Central Bank To Outline Islamic Finance Expansion Strategy

News: Pakistan ' s central bank is soon to outline a strategy for expand ing the Islamic banking and finance industry in the country, after consulting a number of important stakeholders, according to Dawn. The State Bank of Pakistan announced that the plans included improvements to legislation, regulation, and taxation - as well as increased diversification of products and services. The central bank added that the sector is likely to double its market share by 2020.

BMI View: Moody's has kept its outlook for Pakistan's banking system at 'negative', citing the industry's high exposure to sovereign credit risk and a challenging domestic operating environment. While we sympathise with these concerns, we believe that a lot has changed in the country over the past few months (e.g. election of fiscally conservative government and movement towards a new IMF programme), and that the outlook for the country's banks is not as grim as the agency portrays in its seemingly static assessment.

Central Bank To Outline Islamic Finance Expansion Strategy

News: Pakistan ' s central bank is soon to outline a strategy for expand ing the Islamic banking and finance industry in the country, after consulting a number of important stakeholders, according to Dawn. The State Bank of Pakistan announced that the plans included improvements to legislation, regulation, and taxation - as well as increased diversification of products and services. The central bank added that the sector is likely to double its market share by 2020.

BMI View: Moody's has kept its outlook for Pakistan's banking system at 'negative', citing the industry's high exposure to sovereign credit risk and a challenging domestic operating environment. While we sympathise with these concerns, we believe that a lot has changed in the country over the past few months (e.g. election of fiscally conservative government and movement towards a new IMF programme), and that the outlook for the country's banks is not as grim as the agency portrays in its seemingly static assessment.

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