Habib Bank to Initiate Islamic Banking System Shortly

The Habib Bank Ltd. (HBL), the country's premier bank, has given final touches to arrangements for initiating Islamic banking system, and its first unit based on Shariah compliance will start functioning in early 2003.

This was stated by HBL President and CEO Zakir Mahmood at a lecture on "Emerging Scenario and Future Prospects" at the Institute of Business Administration (IBA).

Praising deregulation and other banking reforms by the government, he felt with emergence of local commercial banks as the financial sector in the country has improved its working manifold and has a tendency of further improvement.

Although the local banks were more interested in investing in industrial sector, requirements of local economy are quite different, he added.

"The key areas for investment in Pakistan are agriculture and cottage industry as agriculture sector contributes 25 percent of country's GDP", said HBL president, adding that provision of credit to the agricultural sector, traders and cottage industry in systemised way would open immense employment opportunities.