Interview with Mr. Muhammad Yasin, Vice President ICMA
PAGE: Tell me something about yourself, please:
Muhammad Yasin: Serving the Institute of Cost and Management Accountants of Pakistan (ICMA) has been one of the most rewarding aspects of my professional journey. I currently have the privilege of serving as Vice President of ICMA and Chairman of the Research & Publications Committee.
I have also been privileged to serve in various leadership roles, including Member of the Strategic Board, Chairman of the Research & Publications Committee, National Council Member, and Chairman, Vice Chairman, and Secretary of the Lahore Branch Council. During this journey, some of the key initiatives I had the opportunity to lead or support include the digital archiving of the Institute’s Journal from 1961 onwards, the launch of the e-Archive, Research & Publications e-Portal, Future CMAs Students’ Magazine, and Authors’ Directory, introduction of knowledge platforms such as Economy Watch, Regulatory Watch, Sector Brief, and Top Tech Trends, organization of record CPD programmes and ERP trainings, establishment of the ICMAP Toastmasters Club, enhancement of corporate partnerships and curriculum development, digitization of financial processes, obtaining PCP accreditation, and strengthening the Institute’s visibility through industry collaboration and thought leadership initiatives. Collectively, these efforts have been aimed at modernizing the Institute, promoting professional excellence, and creating greater value for members, students, and other stakeholders.
Professionally, I have over 24 years of experience in finance, corporate governance, strategic planning, and business transformation. As Group Chief Financial Officer of The Superior Group, and previously as CFO of Pakistan GasPort Limited and Jamshoro Joint Venture Limited, I have been fortunate to contribute to major national projects, including Pakistan’s LNG infrastructure, large-scale project financing, and enterprise-wide digital transformation initiatives.
Throughout my career, I have believed that a finance professional’s role extends beyond managing numbers. I remain committed to serving the profession by promoting research, mentoring future professionals, and contributing to the development of robust financial institutions that support Pakistan’s sustainable economic growth.
PAGE: What is your perspective on the constitutional mandate to eliminate interest (Riba) from the financial system in Pakistan by January 2028?
Muhammad Yasin: I believe the constitutional mandate to eliminate Riba from Pakistan’s financial system before January 2028 is one of the most significant financial sector reforms in the country’s history. While Article 38(f) of the Constitution had long envisaged the elimination of Riba “as early as possible,” the Federal Shariat Court’s landmark judgment in 2022 and the 26th Constitutional Amendment have now transformed this aspiration into a constitutional obligation with a defined timeline.
From my perspective, the transition should not be viewed merely as a replacement of conventional banking with Islamic banking. It requires a comprehensive transformation of the entire financial ecosystem, including banking laws, capital markets, taxation, public debt management, corporate financing, and regulatory frameworks. The objective should be to establish a financial system that is not only fully compliant with Shariah principles but also efficient, transparent, resilient, and internationally competitive.
The Government has already reaffirmed its commitment to this transformation. As highlighted by the Federal Finance Minister, the vision is to build a financial system that is aligned with our faith while simultaneously promoting inclusive and sustainable economic growth. I fully endorse this approach because Islamic finance, when implemented in its true spirit, is not merely an alternative financing model; it is founded on ethical business practices, risk-sharing, asset-backed financing, transparency, and value creation. It also has the potential to mobilize investment for infrastructure, SMEs, agriculture, affordable housing, and social finance, thereby contributing to broader economic and social development.
At the same time, the transition presents significant implementation challenges. It will require coordinated efforts by the Government, State Bank of Pakistan, SECP, financial institutions, capital market participants, and professional bodies to modernize the legal and regulatory framework, expand Shariah-compliant financial instruments, strengthen Islamic capital markets, develop skilled human resources, and enhance public awareness. Equally important is ensuring that businesses and investors experience a smooth transition without disrupting financial stability or economic activity.
In my opinion, if this transformation is implemented through careful planning, innovation, and strong stakeholder collaboration, Pakistan has a unique opportunity to develop a financial system that combines ethical values with economic efficiency, promotes financial inclusion and entrepreneurship, and supports sustainable long-term economic growth. The transition to a Riba-free economy should therefore be viewed not only as a constitutional requirement but also as an opportunity to strengthen Pakistan’s financial architecture for future generations.
PAGE: Islamic banking in Pakistan accounts for over 25% of industry deposits. What is your standpoint on it?
Muhammad Yasin: The fact that Islamic banking now accounts for over one-quarter of Pakistan’s banking deposits is, in my view, a significant milestone for the country’s financial sector. It is not merely a reflection of market growth but an indication of the increasing confidence of individuals and businesses in a financial system based on Shariah principles of fairness, transparency, and asset-backed financing.
As of March 2026, Islamic banking deposits reached Rs. 11.3 trillion, an increase of Rs. 262 billion during the quarter, raising the sector’s share of the banking industry’s deposits to 28.5%. This growth has been supported by both full-fledged Islamic banks, which accounted for Rs. 4.891 trillion (43%) of deposits, and Islamic Banking Branches (IBBs), which contributed Rs. 6.407 trillion (57%). The industry’s expanding footprint, comprising seven full-fledged Islamic banks, 7,674 Islamic banking branches and sub-branches, and 3,473 Islamic banking windows have further enhanced the accessibility of Shariah-compliant financial services across the country.
The momentum is equally evident in digital banking. Between March 2025 and March 2026, the number of digitally onboarded Islamic banking accounts increased from 663,292 to 1,479,362, compared to an increase from 428,461 to 911,494 for conventional banking accounts. The addition of 816,070 Islamic accounts versus 483,033 conventional accounts indicates that customers are increasingly choosing Islamic banking through digital channels, reinforcing the sector’s strong growth trajectory.
However, I believe the success of Islamic banking should not be measured solely by the size of its deposits or market share. Its real success will depend on how effectively it contributes to Pakistan’s economic and social development. Islamic finance should expand access to finance for SMEs, agriculture, affordable housing, and underserved communities, while mobilizing savings into productive investments that generate employment and support sustainable economic growth.
Looking ahead, the industry’s continued expansion should be driven by innovation, customer-centric products, digital transformation, and strong Shariah governance. At the same time, policymakers and regulators should continue strengthening the legal and regulatory framework and deepening Islamic capital markets to support the sector’s long-term development. If these priorities remain at the forefront, Islamic banking can become not only a larger segment of Pakistan’s financial system but also a powerful catalyst for inclusive, resilient, and sustainable economic growth.
PAGE: How would you elaborate on the Shariah-compliant solutions ranging from personal financing to corporate Sukuk bonds?
Muhammad Yasin: Pakistan’s Islamic finance industry has evolved into a comprehensive financial ecosystem that offers Shariah-compliant solutions for individuals, businesses, investors, and the government. Today, Islamic finance extends well beyond deposit-taking and financing, providing a complete range of financial products and services that support both economic growth and financial inclusion.
At the retail level, Islamic banks offer a wide range of products, including Qard-based current accounts, Mudarabah-based savings and term deposits, home, vehicle, personal, education, and consumer financing through Shariah-compliant contracts such as Murabaha, Musawamah, Ijarah, and Diminishing Musharakah. Specialized offerings, including women’s banking, senior citizen accounts, freelancer accounts, Roshan Digital Accounts, and fully digital Islamic banking services, have further broadened access to Shariah-compliant finance.
The sector has also achieved significant scale. As of March 2026, the total assets of Islamic Banking Institutions (IBIs) reached Rs. 14.7 trillion, while net investments increased to Rs. 7.801 trillion, primarily supported by investments in Government of Pakistan Ijarah Sukuk. The financing portfolio is well diversified, with Diminishing Musharakah accounting for 34% of total financing, followed by Musharakah (25.7%), Istisna (10.1%), and Murabaha (9.2%).
For businesses, Islamic finance provides comprehensive solutions for working capital, trade finance, import and export financing, project finance, construction, agriculture, equipment financing, and SME development through instruments such as Murabaha, Running Musharakah, Ijarah, Istisna, Salam, and Islamic Export Refinance Schemes. These products ensure that financing remains linked to real economic activity and productive assets.
Beyond banking, Pakistan’s Islamic financial ecosystem now includes Takaful, Islamic mutual funds, voluntary pension schemes, Islamic leasing, Islamic microfinance, fintech-enabled services, digital banking platforms, and QR-based payment solutions, enabling wider financial inclusion and greater customer convenience.
At the capital market level, Sukuk has emerged as a vital source of long-term financing for both the public and private sectors. A variety of structures, including Ijarah Sukuk, Bai Muajjal Sukuk, Hybrid Sukuk, Green Sukuk, and fixed- and variable-rate Sukuk, are being used to finance infrastructure, energy, transportation, and other strategic development projects while providing investors with Shariah-compliant investment opportunities.
In my opinion, the strength of Islamic finance lies in its ability to provide practical and competitive financial solutions within an ethical framework based on asset-backed financing, risk sharing, and transparency. As the industry continues to innovate and deepen its product offerings, it is well positioned to support entrepreneurship, mobilize long-term investment, strengthen financial inclusion, and contribute to Pakistan’s sustainable economic development.
PAGE: How would you comment on the framework for integrating Islamic economic principles into Pakistan’s economy?
Muhammad Yasin: In my view, the framework for integrating Islamic economic principles into Pakistan’s economy should be holistic, gradual, and institution-driven. It should not be limited to converting conventional financial products into Shariah-compliant alternatives; rather, it should transform the broader economic and financial ecosystem in line with the objectives of Islamic economics.
The framework should rest on the core principles of Tawhid, Adl (justice), Ihsan (benevolence), prohibition of Riba and Gharar, ethical investment, risk-sharing, and equitable wealth distribution. These principles encourage productive economic activity, transparency, responsible business conduct, and social welfare while discouraging exploitation and excessive speculation.
From a policy perspective, successful implementation requires a strong legal and regulatory framework led by the Government of Pakistan, the State Bank of Pakistan, and the SECP. This includes harmonizing financial laws, strengthening Shariah governance, expanding Islamic banking and capital markets, promoting Sukuk for infrastructure financing, encouraging Takaful and Islamic social finance, and supporting innovation through digital Islamic financial services.
Greater access to Shariah-compliant finance for individuals, SMEs, agriculture, affordable housing, infrastructure, and entrepreneurship can enhance financial inclusion and create sustainable employment opportunities. At the same time, institutions such as Zakat and Waqf should be strengthened to complement commercial finance through poverty alleviation, education, healthcare, and social development initiatives.
Finally, the success of this framework will depend on collaboration among regulators, financial institutions, businesses, academia, and professional bodies, supported by public awareness and capacity building. In my opinion, if implemented with sound governance and careful planning, this framework can help Pakistan establish an economic system that combines economic efficiency with social justice, promotes ethical and inclusive growth, and strengthens the country’s long-term economic resilience.