The National Institute of Banking & Finance (NIBAF) of Pakistan and Bank Negara Malaysia have signed a Memorandum of Understanding (MoU) to establish a framework of cooperation between the two for the mutual benefit and joint cooperation, promoting and undertaking research, development, training and education in Islamic finance. Dr. Shamshad Akhtar, Governor of the State Bank of Pakistan (SBP), signed for NIBAF in her capacity as chairperson of its Board of Directors while the Governor of Bank Negara Malaysia Tan Sri Dr. Zeti Akhtar Aziz signed the document. The Prime Minister of Pakistan, Shaukat Aziz and the Prime Minister of Malaysia, Dato Seri Abdullah Hj.Ahmad Badawi were present at the MOU signing ceremony. Both parties will be able to tap into each other's perspectives of the industry as well as the pool of market practitioners, Shariah scholars, university professors, regulators and other service providers. The MoU signifies the commitment to strengthen the ties between the two countries, taking into consideration the long established relationship as members of the OIC communities. The SBP aims to establish Islamic banking as a parallel banking system, which is comparable and compatible to conventional banking and can become the banking of first choice in Pakistan depending on the market demand. It needs to be robust enough to offer a viable alternative to conventional banking should the market decide that we should have an exclusively Islamic banking system in the country. To cope with the increasing demand of human resources trained in Islamic banking & finance, the SBP is taking different measures. A Task Force on Research and Development is working for suggesting measures for capacity building issues in Islamic Banking and Finance.
