players entering the market with aggressive expansion plans in very near future. the challenge will however be to develop suitably qualified and trained hr to man this growth ; while sbp will be further intensifying its efforts to build the industry ’ s hr capacity through its regular and specialized training programs, the ibis would also have to significantly increase their investment in hr development. another challenge would be diversification of assets mix and taping non - traditional sectors like agriculture and smes to deploy the growing deposit base in productive avenues. presently the ibis ’ exposure in these bis central bankers ’ speeches sectors is nominal that needs to be increased significantly, which would not only improve their repute amongst the masses but would also provide them an attractive avenue to develop and expand their assets portfolios. sbp would be willing to provide necessary support to ibis to build portfolios in these non - traditional but strategically important sectors. my thanks and appreciation again to redmoney for organizing this event and i hope such collaborations will continue in future. i wish all the foreign delegates to have pleasant stay in karachi and a safe journey back home. thank you. bis central bankers ’ speeches

kazi abdul muktadir : islamic finance developments in pakistan keynote address by mr kazi abdul muktadir, deputy governor of the state bank of pakistan, at the islamic finance news ( ifn ) roadshow 2012, karachi, 4 september 2012. * * * distinguished guests, ladies and gentlemen! assalam - u - alikum and a very good morning. it is my great pleasure to welcome you all in this ifn road show. i would like to congratulate and thank redmoney for organizing the show in pakistan, which is one of the fastest growing islamic finance markets across the globe. such events not only enhance islamic finance awareness and stimulate its demand but also provide a platform to islamic finance stakeholders to share their experiences and insights about this fast emerging segment of the financial system. i hope that today ’ s discussions and deliberations would help in addressing the key challenges being faced by the industry and contribute towards sustaining the growth momentum. ladies & gentlemen! since the inception of modern islamic finance in 1960 ’ s, islamic banking has evolved from its relatively modest size to a vibrant industry with an increasing global footprint. with a size of us $ 1. 35 trillion ( according to global islamic finance report 2012 ) and annual growth rate of more than 20 percent, the islamic financial industry now comprises 430 islamic banks and financial institutions and around 191 conventional banks having islamic banking windows operating in more than 75 countries. the relative resilience and stability of the industry during the financial crisis and its flexibility and responsiveness to changing business needs has helped the industry to establish itself as a viable financial system. the tremors and aftershocks of the financial crisis are still on either in the form of european debt crisis and / or weakening global economic outlook and the policy makers are still looking for answers to fix these issues. islamic finance, with its roots in a moral economic model that supports productive economic activity and discourages excessive leveraging and imprudent risk taking, can play an important role in rebuilding the financial system. i believe that this is high time for islamic economists and scholars to highlight the inherent strengths and potential of islamic finance in addressing the existential challenges faced by the global financial and economic systems. ladies & gentlemen! the evolution of islamic finance industry in pakistan has followed the same trajectory as global islamic financial industry ; with growth mainly intensifying over the last decade. despite having introduced landmark changes during 1980s including amendment in the banking companies ordinance, enactment of mudaraba companies and