- The Scholar-Banker Synergy:
Mufti Sahib, your profile is distinctive, blending a classical Dars-e-Nizami background with a Takhassus fil-Ifta, alongside a Master’s in Islamic Banking and a JAIBP. In your experience, how does this dual lens—of a traditional Mufti and a modern banker—shape your approach to Shariah compliance and product development in a way that might differ from someone with only one of these perspectives?
Answer: This combination helps me to come across the spirit of the problem, so that I can take Shariah decision easily and more efficiently to find out the solution of problem.
- From Fatawa to Framework:
You have over ten years of experience in issuing Fatawa and now lead the Shariah Compliance department at a scheduled bank. What is the most significant intellectual and practical shift required when moving from giving Fatawa on individual, isolated cases to building and overseeing a Shariah compliance framework for an entire institution?
Answer: Actually while giving Fatawa to institution or like bank we have to account for a certain elements like regulatory instructions, internal policies, depositors (Rabbul Maal) rights to safeguard their deposit etc.
- The Art of Product Structuring:
As someone involved in product structuring, where do you see the most friction—or the most harmony—between the classical Fiqhi principles derived from texts like the Shariah Standards and the commercial objectives of a modern bank? Can you give an example of a product where reconciling these two required a particularly creative solution?
Answer: Classical book of fiqh can have wide range of solution and explanation. Commercial objectives of a modern bank cannot be ignored if it is in done in accordance with Shariah. We have developed reverse Modaraba, Shirkatul Aamal, Travel Financing based on Murbaha, First Retial Sukuk for K-electric and other financing product in order to full fill the commercial objective of financial institutions.
- Shariah Audit: A Critical Lens:
You teach and practice Shariah Audit. In your view, how can a Shariah audit move beyond being a mere checklist of document signatures to become a true evaluation of the spiritof Shariah compliance within a bank’s operations? What are the key indicators you look for?
Answer: In Shariah audit risk assessment very important. Without proper product, industry, customer, and business risk assessment Shariah audit cannot be done in proper manner. Checklist based Shariah audit is possible in case of branches.
- The Evolving Role of the Shariah Scholar:
The State Bank and the industry are increasingly institutionalizing the role of Shariah scholars. From your position as a Resident Shariah Board Member, how do you see the expectations from a bank’s Shariah team evolving? Is it purely a gatekeeper of permissibility, or is it also a strategic partner in value creation?
Answer: Shariah Advisor of RSBM is key person in bank. RSBM at the same time safeguarding he banks interest and ensuring the Shariah compliance in each and every manner. So the position is strategically important as far as growth of business is concern. Strong Shariah team helps in research and development and finding out the innovative idea which may lead towards the generation of new business and customers.
- Technology and Fiqh:
With the rise of fintech and digital banking, new questions of Fiqh are emerging (e.g., in digital currencies, automated contracts, AI-driven advisory). How prepared is the traditional Ifta system in Pakistan to address these modern, complex issues, and what is the scholar’s responsibility in bridging this gap?
Answer: Fiqh Hanfi is very rich in finding out the solution of modern ear challenges whether it is related to fintech, Blockchain, smart contract or AI generating tools. With the help traditional method of analogical deduction of problem we can find out the solution. Till the date we have Fatawa with respect to each segment of life.
- Takaful’s Operational Reality:
You have provided Fatawa on Takaful issues. Many argue the Takaful model in Pakistan is still struggling to be truly Shariah-compliant in its operations, often mirroring conventional insurance. From your scholarly perspective, what is the single most critical operational challenge that the Takaful industry must overcome to realize its true Shariah-based potential?
Answer:
From a scholarly perspective, the single most critical operational challenge facing the Takaful industry in Pakistan is the genuine separation and independence of the participants’ risk fund from the shareholders’ fund. In a true Shariah-based Takaful system, participants contribute donations (tabarruʿ) into a collective pool that they mutually own and from which claims are paid, while the Takaful operator only manages the fund as an agent or manager. In practice, however, operational structures often blur this distinction, with operators exerting significant control over the participants’ fund and adopting practices that closely resemble conventional insurance. This weakens the principle of mutual risk-sharing (taʿāwun) and risks reintroducing elements of uncertainty and risk transfer that Takaful was meant to avoid. Therefore, establishing clear governance, financial segregation, and operational autonomy of the participants’ fund is essential for the industry to realize its authentic Shariah-based potential.
- The Challenge of Standardization vs. Innovation:
Pakistan has adopted global Shariah standards to an extent. Do you feel these standards provide a necessary framework for a growing industry, or can they sometimes stifle local innovation that might be better suited to Pakistan’s unique socio-economic context?
Answer: Global Shariah standards provide an important foundational framework for the development of Pakistan’s Islamic finance and Takaful industry, as they help ensure credibility, consistency, and alignment with widely accepted principles of Shariah compliance. These standards strengthen governance, enhance market confidence, and facilitate international integration. However, if applied too rigidly, they may sometimes limit local innovation that could better address Pakistan’s unique socio-economic realities, such as financial inclusion, micro-Takaful, and community-based risk-sharing models. Therefore, while global standards are necessary to maintain discipline and legitimacy, regulators and scholars should allow thoughtful flexibility so that locally relevant solutions can emerge within the broader boundaries of Shariah principles.
- Beyond the Scholar’s Desk:
You are actively engaged with organizations like Behboud Association and various teaching engagements. How do these interactions with civil society, students, and the wider community inform your work as a Shariah scholar in a bank? Do they provide a different perspective on the “Maqasid” (higher objectives) of Islamic finance?
Answer: Most of the people are get shocked by listing financial and banking terminology from Shariah Scholar. While addressing the modern financial and social issues in their language and by taking precedent from Quran and Sunnah they normally get satisfied. Maqasid Al Shariah is although the core objective of Shariah but providing Shariah compliant solution of problem is more important and interesting for individual.
- Guidance for Future Scholars:
For a young student sitting in a Darul Uloom today who is interested in Islamic finance, what is the most crucial advice you would give them to prepare for a career that demands both classical knowledge and contemporary financial acumen? What should they study that isn’t in the traditional curriculum?
Answer: Young students needs to apprehend the following subjects;
- Accounting
- Banking
- Economics
- IT
With the help of these subjects they can better excel in their career.
- Vision for Pakistan’s Islamic Finance:
Looking ahead, if you could see one fundamental shift in the understanding or practice of Islamic banking and finance in Pakistan over the next ten years, what would it be?
Answer: Providing better return on deposit, subsidized schemes for innovative business ideas, agricultural financing, Financing to SME sectors, supporting socio economic causes and considering the well being of society can provide better outreach in Pakistan. Ultimately the well being of society is core objective of Islamic Economics system.