Senate passes bill to strengthen framework for Islamic banking

ISLAMABAD: The Senate on Saturday passed banking companies amendment bill aimed at strengthening legal framework for Islamic banking in the country.

As many expected that the 26th constitutional amendment bill will land in the house, the time for the Senate session was repeatedly changed amid outcry over continued intimidation of opposition lawmakers and abduction of their family members.

The session was originally scheduled to be held at 11am, but the time was changed to 12.30pm, 3pm, 6.30pm, 8pm and then 9.30pm through separate notifications.

The session could only start at about 11.10pm during which the banking companies amendment bill was passed. The bill was moved by Finance Minister Muhammad Aurangzeb.

Sharing the main features of the bill, the finance minister said it will help strengthen legal framework to provide support for Islamic banking business. He said the regulatory role of the State Bank of Pakistan has also been strengthened to promote financial inclusion. He said the procedure of lodging complaints with Banking Mohtasib has also been simplified.

The finance minister said that in 2008 many companies sank due to the global financial crisis, adding that Pakistan is set to bring reforms to overcome such a financial crisis under the bill.

The minister also informed the house that a law was on the anvil to end the practice of being a non-filer, adding that there were many countries where one cannot vote unless he/she holds a national tax number (NTN).

Asked if the State Bank is under the government, he said it was an independent entity and giving this status was a decision of parliament.

In reply to a question about denial of loans and credit cards to lawmakers for being politically exposed persons (PEPs), he said he was a PEP himself. He said extra diligence was required for PEPs, but added that there was no reason whatsoever to deny any facilities to PEPs and promised to take up the matter with the SBP governor.

After former Senate chairman Farooq H. Naek pointed out that under the rules, the house must be adjourned before change of date, Deputy Senate Chairman adjourned the house to meet again at 12.30am. But it did not meet again and it was announced that the house will now meet on Sunday (today) at 3pm.

Published in Dawn, October 20th, 2024