Islamic finance education: Current state and challenges for Pakistan

Figures & data

Figure 1. Conceptual framework.

Appendix A. Definitions of Arabic terms

Sr. No.	Term	Definition
1	Madrasa/Madaris	The institutions at which teaches the students from first to tenth grade which is equivalent to the primary and secondary schools.
2	Riba	The word “Riba” means excess, increase or addition, which correctly interpreted according to Shariah terminology, implies any excess compensation without due consideration (consideration does not include time value of money).
3	Fatwa	A formal ruling or interpretation on a point of Islamic law given by a qualified legal scholar
4	Shariah	Sharia is a body of religious law that forms part of the Islamic tradition. It is derived from the religious precepts of Islam and is based particularly on the Quran and the Hadith.
5	Dar-ul-uloom	It encapsulates eleventh and twelfth grade, equivalent to a college (intermediate) education.
6	Jamia	It has a status of university education.

Appendix B. List of abbreviations

Sr. No.	Abbreviation	Complete Name
1	FAPC	Fit and Proper Criteria
2	SBP	State Bank of Pakistan
3	CII	Council of Islamic Ideology
4	FSC	Federal Shariat Court
5	IBFIs	Islamic Banking and Finance Institutions
6	IBI	Islamic Banking Industry
7	IFI	Islamic Finance Industry (IFI)
8	ITMDP	Ittehad-e-Tanzimat Madaris-e-Deeniya Pakistan
9	PMEB	Pakistan Madrasa Education Board
10	HCT	Human Capital Theory
11	RSBM	Resident Shariah Board Members

Table 1. Profiles of SB members of Islamic and conventional banks with Islamic banking windows and their adherence to FAPC (Oct 2018 to Feb 2019)

Name of Bank	Shari’ah board	Academic qualification	Experience	RSBM serving in other IFI’s, if yes then in how many		SB member serving in other IBI’s, if yes, then in how many	Institute of education	Degree in economics or Finance
Meezan bank	ⅰ) Chairman: Muhammad Taqi Usmani	Yes	Yes	No	Zero	1 domestic, 4 abroad	Punjab University, Darul uloom Karachi	No
	ⅰⅰ) RSBM: Dr. Muhammad Imran Ashraf Usmani	Yes	Yes			-	Darul uloom Karachi,	Yes
	ⅰⅰⅰ) Member: Sheikh Essam M. Ishaq	Yes	Yes			1 domestic, 2 abroad	Mcgill University	No
Al Baraka bank	ⅰ) Chairman: Justice (R) Khalil-ur-Rehman Khan	Yes	Yes	No	Zero	-	Punjab University	No
	ⅰⅰ) RSBM: Mufti Abdullah Najeeb Ul Haq Siddiqui	Yes	Yes			-	Darul uloom Karachi, Center for Islamic economics	Yes
	ⅰⅰⅰ) Member: Sheikh Essam M. Ishaq	Yes	Yes			1 domestic, 2 abroad	Mcgill University	No
Bank Islami	ⅰ) Chairman: Mufti Irshad ahmed aijaz	Yes	Yes	No	Zero	2 domestic	Jamiat-ul-uloom islamiyyah Karachi, Darul uloom Karachi, Iqra University Karachi.	Yes
	ⅰⅰ) RSBM: Mufti javed Ahmed	Yes	Yes			-	Darul uloom Karachi, Jamia-tur-rasheed Karachi, Karachi University	Yes
	ⅰⅰⅰ) Member: Mufti Muhammad Husain Khaleel khail	Yes	Yes			-	Darul uloom Karachi, Jamia-tur-rasheed Karachi	No
Dubai Islamic bank	ⅰ) Chairman: Dr. Hussein Hamed Hassan	Yes	Yes	Yes	2 local, 3 abroad	-	Al Azhar University, Cairo, Egypt, University of New York, Cairo University, Egypt.	Yes
	ⅰⅰ) RSBM: Mufti Muhammad Hassaan Kaleem	Yes	Yes			-	Darul uloom Karachi,	NA
	ⅰⅰⅰ) Member: Mian Muhammad Nazir	Yes	Yes			-	University of Cambridge, International Islamic University Islamabad,	NA
MCB Islamic bank	ⅰ) Chairman: Mufti munib-ur-rehman	Yes	Yes	NO		-	NA	NA
	ⅰⅰ) RSBM: Mufti Syed Sabir Hussain	Yes	Yes				NA	NA
	ⅰⅰⅰ) Member:						NA	NA
National bank	ⅰ) Chairman: Mufti Ehsan Waquar Ahmad	Yes	Yes			2 local	Jamiat-ur-Rasheed, Institute of Business Management Karachi, Karachi University	Yes
	ⅰⅰ) RSBM: Mufti Muhammad Imran	Yes	Yes	No		-	NA	Yes
	ⅰⅰⅰ) Member: Dr. Mufti Khalil Aazami	Yes	Yes			2 local	Darul Uloom, Karachi	No
Bank of Punjab	ⅰ) Chairman: Mufti Muhammad Zahid	Yes	Yes	No		2 local	Wifaqul Madaris Al Arabiyah Pakistan, International Islamic University, Islamabad	No
	ⅰⅰ) RSBM: Dr. Muhammad Mushtaq Ahmed	Yes	Yes			-	Daruliftaa walirshaad Karachi, Jamia darululoom, Karachi	Yes
	ⅰⅰⅰ) Member: Dr. Ejaz Ahmed Samadani	Yes	Yes			1 abroad, Local 2	Jamia darululoom, Karachi, Karachi University	Yes
Bank of Khyber	ⅰ) Chairman: Mufti Muhammad Zahid	Yes	Yes	Yes	1 local	2 local	Wifaqul Madaris Al Arabiyah Pakistan, International Islamic University, Islamabad	No
	ⅰⅰ) RSBM: Qazi Abdul Samad	Yes	Yes				Rabita-Tul-Madaris, International Islamic University, Islamabad	Yes
	ⅰⅰⅰ) Member: Mr. Muhammad Ayub	Yes	Yes			-	Madrassa Zia ul Quran ul Hadith(salafia)	Yes
	ⅰv) Member: Dr. Shamsul Haq Hanif	Yes	Yes			-	Ihya Ul Uloom, Timergarah, University of Peshawar.	No
	V) Member: Syed Muhammad Abbas	Yes	Yes			-	University of Karachi, University of Peshawar	Yes
	Vⅰ) Member: Professor Dr. Dost Muhammad Khan	Yes	Yes			-	University of Peshawar	No
	Vⅰⅰ) Member: Dr. Shahzad Iqbal Sham	Yes	Yes			-	Allama Iqbal open university	No
Sindh bank	ⅰ) Chairman: Mufti Ibrahim Essa	Yes	Yes	Yes	1 local	1 local	Darululoom, Karachi	No
	ⅰⅰ) RSBM: Mufti Muhammad Hassan Ashraf Usmani	Yes	Yes			-	Darululoom, Karachi, Karachi University	Yes
	ⅰⅰⅰ) Member: Mufti Zeeshan Abdul Aziz	Yes	Yes				Darululoom, Karachi	Yes
Askari bank	ⅰ) Chairman: Mufti Muhammad Zahid	Yes	Yes	No		2 local	Wifaqul Madaris Al Arabiyah Pakistan, International Islamic University, Islamabad	No
	ⅰⅰ) RSBM: Dr. Muhammad Tahir Mansoori	Yes	Yes			-	Dar ul-uloom’ Mansoorah Lahore, International Islamic University, Punjab University, Lahore	No
	ⅰⅰⅰ) Member: Mufti Ismatullah	Yes	Yes			1 local	Darululoom, Karachi, Karachi University	Yes
Bank Alfalah	ⅰ) Chairman: Dr. Mufti Khalil Ahmad Aazami	Yes	Yes	No		2 local	Darululoom, Karachi, Karachi University	No
	ⅰⅰ) RSBM: Mufti Ovais Ahmed Qazi	Yes	Yes			-	Darululoom, Karachi, Karachi University	Yes
	ⅰⅰⅰ) Member: Mufti Mohib ul Haq Siddiqui	Yes	Yes			2 local	Darululoom, Karachi,	No
United bank	ⅰ) Chairman: Dr. Mufti Muhammad Zubair Usmani	Yes	Yes	No		2 local	Darululoom, Karachi, Karachi University	Yes
	ⅰⅰ) RSBM: Mufti Abdul Rehman	Yes	Yes			-	Jamia darululoom, Karachi, Karachi University, Iqra University, Karachi	Yes
	ⅰⅰⅰ) Member: Dr. Ejaz Ahmed Samdani	Yes	Yes			1 abroad, Local 2	Jamia darululoom, Karachi, Karachi University	Yes
Habib bank	ⅰ) Chairman: Dr. Mufti Muhammad Zubair Usmani	Yes	Yes	No		2 local	Darululoom, Karachi, Karachi University	Yes
	ⅰⅰ) RSBM: Mufti Muhammad Yahya Asim	Yes	Yes			-	Darululoom, Karachi,	NA
	ⅰⅰⅰ) Member: Dr. Ejaz Ahmed Samdani	Yes	Yes			1 abroad, Local 2	Jamia darululoom, Karachi, Karachi University	Yes
Allied bank	ⅰ) Chairman: Mufti Ehsan Waquar Ahmad	Yes	Yes	No		2 local	Jamiat-ur-Rasheed, Institute of Business Management Karachi, Karachi University	Yes
	ⅰⅰ) RSBM: Muhammad Iftikhar Baig	Yes	Yes			-	Darululoom, Karachi,	Yes
	ⅰⅰⅰ) Member: Mufti Mahmood Ahmad	Yes	Yes			-	Wifaqu-UL-Almadaris Alarabia, Punjab University, Lahore, Jamia Darul-Uloom, Karachi, Jamia Khair-UL-madaris Multan.	No
Habib metropolitan bank	ⅰ) Chairman: Dr. Mufti Muhammad Zubair Usmani	Yes	Yes	No		2 local	Darululoom, Karachi, Karachi University	Yes
	ⅰⅰ) RSBM: Mufti Abdul Sattar Laghari	Yes	Yes			-	Darululoom, Karachi,	No
	ⅰⅰⅰ) Member: Mufti Ibrahim Essa	Yes	Yes			1 local	Darululoom, Karachi	No
Bank Al Habib	ⅰ) Chairman: Mufti Ismatullah Hamdullah	Yes	Yes	No		1 local	Darululoom, Karachi, Karachi University	Yes
	ⅰⅰ) RSBM: Mufti Muahammad Sarfraz Nihal	Yes	Yes			-	Jamia Farooqia, Karachi, University of Karachi	Yes
	ⅰⅰⅰ) Member: Mufti Mohib ul Haq Siddiqui	Yes	Yes			2 local	Darululoom, Karachi,	No
Faysal bank	ⅰ) Chairman: Mufti Mohib ul Haq Siddiqui	Yes	Yes	No		2 local	Darululoom, Karachi,	No
	ⅰⅰ) RSBM: Mufti Khawaja Noor ul Hassan	Yes	Yes			-	Jamia Farooqia & Jamia Darul Uloom, Taleem ul Quran, Karachi, University of Karachi & Federal Urdu University	No
	ⅰⅰⅰ) Member: Dr. Mufti Khalil Aazami	Yes	Yes			2 local	Darul Uloom, Karachi	No
Soneri bank	ⅰ) Chairman: Mufti Ehsan Waquar Ahmad	Yes	Yes	No		2 local	Jamiat-ur-Rasheed, Institute of Business Management Karachi, Karachi University	Yes
	ⅰⅰ) RSBM: Mufti Muhammad Zahid	Yes	Yes	No		-	Jamia Darul Uloom Karachi	No
	ⅰⅰⅰ) Member: Bilal Ahmed Qazi	Yes	Yes			1 local	Jamia-tul-Uloom Ul-Islamiyah Banori Karachi, Jamia Darululoom Karachi, Karachi University	Yes
Summit bank	ⅰ) Chairman: Mufti Irshad ahmed aijaz	Yes	Yes	Yes	2	2 domestic	Jamiat-ul-uloom islamiyyah Karachi, Darul uloom Karachi, Iqra University, Karachi	Yes
	ⅰⅰ) RSBM: Mufti Muhammad Najeeb Khan	Yes	Yes			-	Jamia Darul Uloom, Karachi, Jamia Darul Uloom, Faisalabad	No
	ⅰⅰⅰ) Member: Bilal Ahmed Qazi	Yes	Yes			1 local	Jamia-tul-Uloom Ul-Islamiyah Banori Karachi, Jamia Darululoom Karachi, Karachi University	Yes
	ⅰv) Member: Dr. Noor Ahmed Shahtaz	Yes	Yes			-	Tanzem ul Madaris Lahore, Karachi University	No
Silk bank	ⅰ) Chairman: Dr. Muhammad Qaseem	Yes	Yes	No		3 abroad	International Islamic University of Islamabad	No
	ⅰⅰ) RSBM: Mufti Syed Adnan Kakakhail	Yes	Yes			-	Jamia-tul-Uloom Ul-Islamiyah Banori Karachi, Jami’a tur Rasheed, Karachi, University of Karachi	No
	ⅰⅰⅰ) Member: Mufti Syed Abu Bakr	Yes	Yes			-	Wifaq ul Madaris, Darululoom Karachi, Karachi University	Yes
Standard Chartered bank	ⅰ) Chairman: Sheikh Nizam Yaquby	Yes	Yes			NA	Bahrain and in Makkah Mcgill University, Montreal, Canada.	Yes
	ⅰⅰ) RSBM: Mufti Muhammad Abdullah	Yes	Yes	No		-	Jamia-tul-Uloom Ul-Islamiyah Banori Karachi, Jami’a tur Rasheed, University of Karachi, Federal Urdu University, University of Sind	Yes
	ⅰⅰⅰ) Member: Mufti Muhammad Abdul Mubeen	Yes	Yes				Jamiah Darul-uloom, Jamia-tul-Uloom Ul-Islamiyah Banori Karachi, The University of Melbourne, International Islamic University, Islamabad	No
	ⅰv) Member: Mufti Irshad Ahmad Aijaz	Yes	Yes			2 domestic	Jamiat-ul-uloom islamiyyah Karachi, Darul uloom Karachi, Iqra University, Karachi	Yes

Note; Concerned with qualification of members FAPC requires that each member of shariah board should have “Shahadat ul Aalamiyyah Degree (Dars e Nizami) from any recognized Board of Madaris with minimum 70% marks and Bachelor’s Degree with a minimum of 2nd Class” or Post Graduate Degree in Kuliyyatush Shari’ah or Kuliyyah Usooluddin, L.L.M. (Shari’ah) with a minimum GPA of 3.0 or equivalent from any recognized University”. Further, as regards experience of shariah board members, each member should have “at least four (4) years’ experience of giving Shari’ah rulings including the period of Takhassus fil Ifta; or at least five (5) years post qualification experience in teaching or Research and Development in Islamic Banking and Finance”

Table 2. Number of SB members graduated from various madrasas

Name of madrasa	Number of graduated SB members	Number of SB members who attended another madrasa
Darul uloom, Karachi	41	13
Jami’a tur Rasheed, Karachi	7	3
Jamiat-ul-uloom islamiyyah, Karachi	8	8
Jamia Farooqia, Karachi	2	1
Darul Ifta Wal Irshad, Karachi	1	0
Wifaqul Madaris Al Arabiyah, Pakistan.	5	2
Rabita-Tul-Madaris Al Islamiah, Pakistan	1	0
Tanzem ul Madaris, Lahore	1	0
Dar ul-uloom Mansoorah, Lahore.	1	0
Ihya Ul Uloom, Timergarah	1	0
Jamia Khair-UL-madaris, Multan.	1	1
Jamia Darul Uloom, Faisalabad	1	1
Madrassa Zia ul Quran ul Hadith (salafia)	1	0

Note: Above numeric figures are calculated by the author’s.

Table 3. Total number of madrasas in different provinces of Pakistan

Province name	Number of madrasas	Percentage
Punjab	16,000	45.27%
Sindh	2800	7.92 %
Khyber Pakhtunkhwa	3136	8.87 %
Balochistan	13,000	36.76 %
ISB	401	1.58 %
Total	35,337	100 %

Note: Above numeric figures are calculated by the author’s.

Table 4. Islamic finance-related degree, specialization or course offering by top 15 business schools of Pakistan

HEC ranking	Institute name	Degree program	Specialization	Courses
1	Iqra University, Karachi	No	No	Yes
2	Lahore School of Economics, Lahore	No	No	No
3	Institute of Business Administration, Karachi	Yes	No	Yes
4	Institute of Management Science, Peshawar	Yes	Yes	Yes
5	Institute of Business Administration, Sukkur	No	No	Yes
6	Shaheed Zulfikar Ali Bhutto Institute of Science and Technology	No	No	Yes
7	The Superior College, Lahore	No	No	Yes
8	Institute of Business Management, Karachi	No	No	Yes
9	University of Central Punjab, Lahore	No	No	Yes
10	Greenwich University, Karachi	No	No	Yes
11	The GIFT University, Gujranwala	No	No	Yes
12	COMMECS Institute of Business and Emerging Sciences, Karachi	Yes	No	Yes
13	Dadabhoy Institute of Higher Education, Karachi	Yes	No	Yes
14	Institute of Management Sciences, Lahore	No	No	No
15	KASB Institute of Technology, Karachi	No	No	No

Table 5. Number of permanent faculty members with core degree in Islamic finance in highly motivated business schools

Ranking	Name of institution	Number of faculty members
3	Institute of Business Administration, Karachi	3
4	Institute of Management Science, Peshawar	4
12	COMMECS Institute of Business and Emerging Sciences, Karachi	0
13	Dadabhoy Institute of Higher Education, Karachi	1
	Total	8

Note: Above numeric figures are calculated by the author’s.

Figure 2. Proposed Islamic finance education framework for Pakistan.

Source: Author’s illustration