Prof. Dr. Hussain Mohiuddin Qadri Calls for a Future-Ready Islamic Finance Ecosystem in Pakistan

At the 8th World Islamic Economics and Finance Conference (WIEFC 2025), Prof. Dr. Hussain Mohiuddin Qadri, Deputy Chairman of the Board of Governors at Minhaj University Lahore, delivered a profound keynote address on building a sustainable and forward-thinking Islamic finance ecosystem in Pakistan.

Dr. Hussain Qadri began by reflecting on Pakistan's early steps toward aligning its financial system with Islamic principles, mentioning the establishment of Mudarabah companies and the introduction of Participation Term Certificates (PTCs) in the 1980s. He acknowledged the substantial contributions of Shaykh-ul-Islam Prof. Dr. Muhammad Tahir-ul-Qadri, whose pioneering work on interest-free banking has laid the foundation for transitioning from conventional to Islamic finance. Dr. Hussain Qadri emphasized that Shaykh-ul-Islam’s research has opened new avenues in Islamic economics, offering solutions rooted in equity-based models and trade-based solutions.

Drawing attention to the landmark 2022 judgment by the Federal Shariat Court, which mandated the elimination of Riba from Pakistan’s financial system within five years, Dr. Hussain Qadri noted the significant policy changes and legislative steps taken by the government, including the 26th Constitutional Amendment in 2024, making the elimination of Riba a constitutional obligation by 2028.

In his speech, Dr. Hussain Qadri also delved into the broader concept of the Islamization of Pakistan’s financial system, clarifying that it goes beyond the simple prohibition of Riba. Islamization, he stated, requires a comprehensive alignment with Islamic values of justice, fairness, and communal welfare. It involves a fundamental shift in economic structures and financial behaviors, inspired by the Prophetic Model of Economic Justice, which prioritizes justice, cooperation, and equitable resource distribution across all societal groups.

Dr. Hussain Qadri stressed that Islamization covers not just banking but extends to the environmental, social, and economic dimensions of financial systems. He underscored the urgent need for skilled professionals capable of designing Shariah-compliant financial products and addressing the social impact of these solutions. With a growing demand for Islamic finance professionals—estimated at 3,000 to 4,000 annually—Dr. Hussain Qadri highlighted the current educational limitations that focus more on theory than on practical, innovative skills.

To address the shortage of skilled professionals and other gaps in the Islamic finance ecosystem, Dr. Hussain Qadri proposed the creation of a National Islamic Finance Development Fund (NIFDF). The fund, he suggested, would serve as a catalyst for innovation and growth in Islamic finance, supporting research, education, and infrastructure development. The NIFDF would involve a broad range of stakeholders, including banks (both Islamic and conventional), universities, legal experts, and international organizations such as the Islamic Development Bank (IsDB).

Dr. Hussain Qadri concluded his speech by emphasizing the critical focus areas for the NIFDF: capacity building, research and innovation, and curriculum and infrastructure development. These efforts, he argued, would ensure that Pakistan is well-equipped to lead the future of Islamic finance, meeting both local and global challenges while remaining true to Islamic principles.