LAHORE: Exhibiting its resolve to provide a dedicated savings platform to the public that comply with the principles of Sharia, Ministry of Finance Central Directorate of National Savings (CDNS) has appointed Dar Al Sharia Legal & Financial Consultancy LLC as Sharia advisor for the establishment of a dedicated Sharia-compliant national savings window (Rafa National Savings) and an Islamic national savings product (Sarwa Islamic Savings Account).
The engagement agreement was signed on October 18, 2017, at CDNS office, Islamabad between CDNS and Dar Al Sharia. The signing ceremony was attended by CDNS Director General Zafar Masud, Zaheer Abbas and Munawar Ali on the behalf of CDNS and Dar Al Sharia Chief Executive Officer Mian Nazir, Mufti M Hassaan Kaleem and Syed Sitwat Rizvi on the behalf of Dar Al Sharia.
CDNS has a distinction of being the largest investment and financial institution in Pakistan which carries a legacy of more than 140 years. It holds a portfolio of over Rs 3.4 trillion with more than 7 million valued investors.
Dar Al Sharia is renowned globally for rendering innovative Sharia consultancy services across all Islamic finance segments and is also the recipient of numerous international awards in recognition of its services to the Islamic finance industry.
Pursuant to this engagement, CDNS will establish, with the advice of Dar Al Sharia, a fully segregated Islamic window, Rafa National Savings, which shall be able to offer Sharia-compliant saving products and services. Rafa National Savings will aim to promote savings that will be utilised for investment by the government of Pakistan in a Sharia-compliant manner for its Sharia-compliant revenue generation projects and development activities. The investors shall be entitled to receive profit proceeds arising out of the revenue generated from Sharia approved assets portfolio.
In order to adopt a robust Sharia governance framework in line with best practices prevalent in the Islamic finance industry, Rafa National Savings will have a dedicated Sharia board, comprising of local and international scholars.
Published in Daily Times, December 5th 2017.