Twelve Satellite Television Licenses
To Be Awarded To Pakistani Companies

ISLAMABAD, Pakistan : April 15 (PNS) - It has been decided in principle to award licenses to twelve Pakistani companies for operation of satellite television channels in the country. The decision to this effect was taken at a meeting of the Pakistan electronic media regularity authority held in Islamabad Thursday.

Already ten licenses have been granted by the authority for operation of satellite television channels in the country this year. In order to liberalize and ease restrictions on cross media ownership of electronic media the Authority decided to setup a working group to formulate recommendations for making amendments in the PEMRA ordinance and PEMRA rules 2002. The PEMRA has awarded licenses for establishment of fm radio stations and cable TV operations in the country.

It has taken wide ranging steps to promote electronic media in the private sector in the country with the objective of giving greater access to the people of Pakistan to the mass media and for raising standards of information, education and entertainment.

http://www.paknews.com/flash.php?id=9&date1=2004-04-16

Essentials for Islamic banking approved

RECORDER REPORT

KARACHI (April 17 2004): The State Bank's Shariah Board on Friday approved essentials and model agreements for Islamic modes of financing to ensure compliance with the minimum Shariah standards by banks conducing Islamic banking in the country.

These essentials and guidelines would be enforced as prudential regulations for Islamic banks in due course and would be taken as general guidelines to be followed by banking institutions conducting Islamic banking in the country.

With dual objectives of facilitating the existing Islamic banking sector and the potential market players to develop Islamic banking products in particular and to create awareness about Islamic banking products in general, model agreements for following modes have been designed: Murabaha, Musawamah, Lease Agreement, Salam, Musharaka (Musharaka Investment Agreement), Istisna, Intfree (agreements for interest-free loan), Mudaraba, (Mudaraba financing agreement), Synd Mudaraba (syndication Mudaraba agreement).

These are model agreements, which can be modified, according to the products designed by the banks conducting Islamic banking business, with the approval of Shariah Board of Islamic commercial banks or Shariah adviser of banks having Islamic banking branches, ensuring that such changes are consistent with the principles of Shariah.

"It does not preclude the possibility of developing new modes or instruments of financing, modifications or variants of the modes provided they are Shariah compliant," said a detail statement issued by the State Bank.

The State Bank has provided details about the each type of agreement and posted all details on its website.

The Bank also invited suggestions for the posted details.

TURNING POINT: Bankers said it was a turning point in the banking history of Pakistan and would bring tremendous change with the inclusion of Islamic flavour in the banking.

The Governor State Bank, Dr Ishrat Husain, had said last month that the Islamic banking had been provided with level playing field and there was tremendous potential for its growth in the country.

Islamic banking has just started in the country and only one bank is operational here.

Recently, Bank-al-Khybar has converted one branch into Islamic banking and the NWFP government is taking interest for its promotion.

The Islamic banking is the fastest growing financial sector in the world of which annual growth is 15 percent.

The Shariah Board of the SBP, headed by former minister of religious affairs Mahmood Ghazi last month assured that the Islamic banking would be promoted on fast track.

VAST POTENTIAL: However, bankers were of the opinion that so far the Islamic mode of banking is very limited and believe that it would take another five years to produce popular products.

The Islamic mode of financing or banking has vast potential to grow but big efforts are required to mobilise funds for its development.

Bankers said that over 50 percent of rural population were whiling to use Islamic banking and most of them are interested in the interest-free loan.

Some bankers said that the Islamic mode of financing for the housing sector would be another attraction for many people.

Copyright Business Recorder, 2004
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