- Islamic banking promotes ethical finance and supports real economic activity
Interview with Mr. Adnan Saeed, an analyst
PAGE: Tell me something about yourself, please:
Adnan Saeed: I am a Certified Global Teacher by the Varkey Foundation and an educator with more than 26 years of experience in Accounting and Finance. My professional journey has been focused on concept-based learning, practical understanding, and helping students build confidence in both exams and real-life financial decisions. I currently serve as Manager Academics at the Institute of Chartered Accountants of Pakistan (ICAP), where I contribute to curriculum planning, academic strategy, and assessment development for professional accountancy education. Previously, I taught as a senior faculty member at the Institute of Cost and Management Accountants of Pakistan (ICMAP), where I was honored multiple times with the Nationwide Faculty Roll of Honor for teaching excellence. For over two decades, I also led the Saeed Academy of Commerce & Economics (SACE), founded by my late father, Mr. Anwer Saeed Khan. It was Pakistan’s first NGO-style commerce academy, created to support underprivileged students. We charged a very small fee and often personally supported students with books and exam expenses. Serving such students has been one of the most meaningful parts of my life. I have taught at respected universities including SZABIST, IoBM, and Federal Urdu University, delivering courses in Financial Accounting, Cost Accounting, and Public Sector Accounting. I have also conducted many professional workshops and contributed to curriculum development and academic writing, including collaboration on international accounting textbooks and content review projects.
Alongside my academic work, I run a WhatsApp Channel titled “Adnan Saeed’s Wisdom & Work Hub” https://whatsapp.com/channel/0029Vb7gl1G9WtC5zjkeR52s
The purpose of this channel is to provide simple, practical, and free learning support to students and young professionals. I share easy explanations of accounting concepts, career guidance, workplace tips, motivation, and daily learning insights. My aim is to make knowledge accessible and remove the fear often associated with accounting and professional education.
I strongly believe that education should not only prepare students for exams but also shape responsible, ethical, and confident professionals. My mission is to continue contributing to education in a meaningful way and support learners both locally and globally.
PAGE: How would you comment on Islamic Banking evolution/revolution in Pakistan?
Adnan Saeed: Islamic banking in Pakistan has moved from a small idea to a strong part of the banking system. In the early years, Pakistan tried to introduce interest free banking in different ways, but the system was not ready. Later, the State Bank chose a step by step approach and created a proper Islamic banking framework. A key turning point came in 2001 to 2002, when the State Bank issued criteria for full Islamic banks and the first Islamic commercial banking license was given. Meezan Bank then started full Islamic commercial banking operations in March 2002. After that, the industry started growing steadily. Today, Islamic banking is no longer a small niche. It has a meaningful share in the banking sector. For example, the State Bank’s official reports show that Islamic banking’s share has reached around one fifth of total banking assets and around one quarter of total deposits by end June 2025. Similar numbers also appear in recent Islamic Banking Bulletins, showing consistent growth in assets and deposits.
Another major development is the legal and policy push toward an interest free system. The Federal Shariat Court gave a detailed judgement in April 2022 and set a target to convert the economy to interest free by the end of 2027. The State Bank has also discussed a structured strategy and the key challenges for this transformation.
In my view, this is both an evolution and a revolution. It is a revolution because demand has grown fast, branch networks have expanded, and more people now actively prefer Shariah compliant products. At the same time, it is an evolution because the system is still improving step by step. The next stage must focus on a few practical issues like stronger Shariah governance, better product depth beyond simple structures, improved liquidity tools, clear legal and tax support, and better customer awareness so people understand what they are using.
It is also important to mention that Pakistan has had strong Islamic finance professionals who helped shape the industry. For example, Mr. Hasan A. Bilgrami is known for hands on work in structuring Islamic modes of financing and has contributed through research and industry leadership in Islamic finance.
Overall, Islamic banking in Pakistan has grown into a strong and trusted segment. If reforms continue with good planning and real product innovation, it can become an even bigger force for ethical finance, inclusion, and stability in the coming years.
PAGE: Could you dilate on Islamic Banking products and benefits?
Adnan Saeed: Islamic banking products are designed according to Shariah principles. The main idea is that money itself should not earn interest. Instead, profit should come from real trade, business activity, or shared investment. Islamic banking avoids interest and focuses on fairness, risk sharing, and asset-backed transactions.
There are several common Islamic banking products.
One is Murabaha. In this product, the bank buys an asset, such as a car or equipment, and then sells it to the customer at a profit. The price and profit are agreed in advance, and payment is made in installments. This is widely used for trade and consumer financing.
Another is Ijarah. This is similar to leasing. The bank buys an asset and gives it to the customer for use. The customer pays rent for using the asset. At the end of the agreement, ownership may be transferred to the customer.
Musharakah and Mudarabah are partnership-based products. In Musharakah, both the bank and the client invest money in a business and share profit and loss. In Mudarabah, one party provides capital and the other provides effort or management. Profit is shared according to agreement, and loss is borne by the capital provider unless there is negligence.
For savings and investment accounts, Islamic banks usually use Mudarabah. Depositors share in the profit earned by the bank from its investments instead of receiving fixed interest.
The benefits of Islamic banking are important. First, it promotes ethical finance. Investments are made only in halal and socially responsible businesses. Second, it supports real economic activity because transactions must be linked with real assets. Third, it encourages risk sharing instead of shifting all risk to one party. This can create more balanced financial relationships.
Islamic banking also gives confidence to people who prefer Shariah-compliant financial services. In Pakistan, many individuals and businesses choose Islamic banking because it aligns with their religious beliefs.
In my view, Islamic banking is not only about avoiding interest. It is about building a fair, transparent, and responsible financial system that supports real growth and social justice. If properly implemented, it can play a strong role in strengthening Pakistan’s financial sector.
In my point of view, Islamic banking is different from conventional banking because it does not deal with fixed interest. In conventional banking, money is lent and a fixed interest is charged, no matter whether the business makes profit or loss. In Islamic banking, the focus is on real trade, partnership, and shared risk. Profit is earned through buying, selling, leasing, or investing in real assets. This makes the transaction more transparent and linked to real economic activity. I personally prefer Islamic banking because it follows ethical principles, avoids interest, and promotes fairness between the bank and the customer. It gives me confidence that my financial dealings are aligned with my values and based on justice and responsibility.