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Islamic Finance
Pakistan signs $4.5bn Islamic loan for power sector relief

Pakistan has signed term sheets with 18 commercial banks for a 1.275 trillion Pakistani rupees ($4.5 billion) Islamic finance facility aimed at easing the financial burden on its power sector.

The syndicated financing, led by Meezan Bank, Habib Bank Limited, National Bank of Pakistan, and United Bank Limited, will help settle outstanding power sector liabilities such as unpaid bills and subsidies, according to a Reuters report.

The liabilities have strained fiscal resources and disrupted the supply chain.

Power Minister Awais Leghari confirmed that the financing would be repaid in 24 quarterly installments over six years, stating that it would not add to public debt.

The government, which owns or controls much of the national power infrastructure, is grappling with a liquidity crunch with limited investment and worsened fiscal pressure.

The financing is part of a broader strategy to stabilize the sector under the conditions of Pakistan’s $7 billion program with the International Monetary Fund (IMF).

The newly structured Islamic facility carries a concessional rate of three-month KIBOR minus 0.9%, a significant improvement over existing liabilities, including surcharges of up to KIBOR plus 4.5% for delayed payments to independent power producers.

The terms have received IMF approval.

To manage repayment, the government will allocate 323 billion Pakistani rupees annually for loan amortization, with a repayment cap set at 1.938 trillion rupees over the six-year term.

The deal also supports Pakistan’s goal of transitioning to a fully Islamic financial system by 2028. Islamic finance currently accounts for roughly 25% of total banking assets in the country.

The financing follows a $200 million loan approved by the Asian Development Bank in December 2024 to upgrade power distribution infrastructure and improve electricity reliability.

Islamic Lifestyle
Third edition of Muslim Tech Fest held in London

Muslim Tech Fest 2025, a two-day event for Muslim-led startups, fintechs, and venture initiatives, opened in London over the weekend. Now in its third year, the festival aims to reimagine how faith and technology can coexist in a fast-changing industry. It drew over 1,500 entrepreneurs, developers, and investors from 27 countries. The event spotlighted Muslim excellence in technology and promoted ethical, values-driven innovation.

"Faith and innovation aren't opposites; they've always gone hand in hand," said Muslim Tech co-founder Zahid Mahmood. "We need to go back to first principles as Muslims and see how we build enterprise, technology, and innovation in a way that serves Allah."

Held with Anadolu as a global media partner, the festival featured on-stage keynotes, startup showcases, community dinners, and themed workshops, including a dedicated kids' track led by Robocode UK. Many of the UK's leading Islamic fintech firms, including Kestrl, Cur8 Capital, Islamic Finance Guru, Pfida, StrideUp and Nester, were among the exhibitors.

New initiatives, such as the Madinah Angels investment network for Muslim-led startups and Ihsan Venture Studio, were also launched on the sidelines. Community-based organisations, including Muslamic Makers, Redwood Founders, Deen Developers, and Hulm Club, were also present.

"The event is not about diversity optics—it's about real access," the organisers said, emphasising their goal of building technology that works for everyone, including underrepresented groups and people in conflict zones.

The event included Palestinian tech founders and representatives from Gaza Sky Geeks, who joined discussions despite significant logistical challenges. Mahmood noted, "Technology alone is not going to save the world. But if this event can inspire someone to make a change, support a cause, or spread a message, then it's been a success."

Islamic Lifestyle
Inbound visitors rise 8% in 2024 as Saudi bolsters tourism sector  

Saudi Arabia welcomed 29.7 million inbound visitors in 2024, its highest ever and up 8% year-on-year, as the country continues to bolster its tourism sector as a key pillar to diversify its economy. 

Inbound tourists peaked in March last year, with 3.2 million people having visited the kingdom.

Egypt emerged as the top source market for inbound tourism in 2024, with 3.2 million visitors, while Asia and the Pacific were top source regions with 9.7 million travellers, according to statistics released by Saudi’s tourism ministry.  

The report named the holy city of Makkah as the most popular destination for the second straight year, with 17.4 million inbound overnight tourists.

Domestic tourists went from 47.8 million in 2019, the last full year before the pandemic halted global tourism, to nearly 81.9 million in 2023 and 86.2 million last year. June witnessed a peak in domestic tourism, with 9.6 million visitors. 

The Makkah Province was the top destination, with 23.5 million visitors, while Riyadh city lead with 12.7 million tourists, according to the statistical report.  

From a dollars-and-cents perspective, inbound tourists spent 168.5 billion Saudi riyals last year, 19% higher than 141.2 billion Saudi riyals spend in 2023.  

Domestic visitor spending rose marginally from 114.4 billion Saudi riyals in 2023 to 115.3 billion Saudi riyals last year.  

“On the global stage, Saudi Arabia continued efforts to solidify its global leadership as a premier destination, topping global tourism figures and leaving a distinctive mark and strong presence at major international forums,” Ahmed Al-Khateeb, Saudi tourism minister said in the report’s introductory remarks.   

The kingdom led the G20 countries in the growth of international tourism numbers last year.         
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Islamic Finance
Repositioning rights in Islamic commerce

In our May article, we explored the importance of accountability as a foundational pillar of moral agency in commerce.

We explored the foundational role of accountability in authentic Islamic business ethics - not simply as a bureaucratic measure, but as a sacred trust (amanah). It’s about quality over quantity. 

True enterprise requires not just strategy and scale, but sincerity and stewardship. Without a moral compass, businesses focus on numbers, potentially justifying, or at least ignoring, the unjustifiable. With it, it becomes a path of integrity and community.

Accountable to what?, you may ask. The answer to this very simple question is: divine rights and that of our fellow human beings, irrespective of faith or persuasion. 

In the Islamic worldview, economic transactions are expressions of these sacred trusts and must be conducted with full ethical consciousness. Huqūq (rights) shape human activity, helping to define the moral terrain in which enterprise operates, ensuring justice and ethical action. 

Every business activity - from employment, to pricing, advertising, contracts, etc. - activates rights.

Customers are owed truth in marketing and fair pricing, employees/workers are owed timely wages, suppliers should be apprised of demand projections. For Muslims, business is not a morally neutral space - it is a constant moral field governed by ḥuqūq.

Typically, scholars delineated 1) the rights owed to God (Ḥuqūq Allāh) encompassing obligations such as sincerity in worship, honesty, and adherence to divine commands and 2) the rights owed to human beings (Ḥuqūq al-ʿIbād) which include justice, fairness, truthfulness, and compassion in dealings with others. Importantly, the two are interconnected. 

Violations of human rights in commerce - such as deceit, exploitation, or breach of contract - are simultaneously violations of our sacred trust. Beyond these, the vicegerency entrusted to human beings means that caring for all of creation is part of our sacred trust. 

Recall the example of the Caliph Umar (May Allah be pleased with him) and his concern for the welfare of the sheep that dwelled in the dominion he was responsible for. 

As we read in the Qur’an, “Indeed, Allah commands you to render trusts to whom they are due and to judge with justice.” [4:58] 

And we all know well the clear instructions given by the Prophet ﷺ, who said, “Give the worker his wages before his sweat dries.” (Ibn Mājah)

Rights and trust
Upholding the rights of others establishes trust. When trust is established, we witness growth and advancement.

Think about this through the lens of the Hadith Qudsi in which God Almighty tells us - 

On the authority of Abu Hurayrah (may Allah be pleased with him), who said that the Messenger of Allah (ﷺ) said: Allah (mighty and sublime be He) said:

"My servant draws not near to Me with anything more loved by Me than the religious duties I have enjoined upon him, and My servant continues to draw near to Me with supererogatory works so that I shall love him. When I love him I am his hearing with which he hears, his seeing with which he sees, his hand with which he strikes and his foot with which he walks. Were he to ask [something] of Me, I would surely give it to him, and were he to ask Me for refuge, I would surely grant him it. - (Related by al-Bukhari.)

God tells us that fulfilling his rights enhances the trust between Him and his servant to such a degree that God loves that servant and grants him whatever he asks of his Lord. 

Isn’t it similar when a seller builds trust with a buyer? Pricing, delivery, quality, fair dealings - all of these are components of building trust in a sales transaction. What about between an employer and an employee?

Fair wages, benefits, professional development, upward mobility, timely feedback and reviews - because the employee’s rights are respected, trust leads to loyalty, dedication, and more. But if rights are violated, trust is eroded.

Huqooq in commerce translates into spiritual elevation
Our deen rejects the notion that business, commerce and trade are secular or profane endeavors.

Every employment agreement, sales transaction, and service provision constitutes a moral event.

The Prophet (ﷺ) highlighted the ethical stakes of business when he stated: "The truthful and trustworthy merchant will be with the Prophets, the truthful, and the martyrs" (Tirmidhi, 1209). 

Trustworthiness and honesty in commerce are not simply admirable traits; they are pathways to spiritual distinction.

Practical implications
Achieving demonstrable change can begin by taking some real steps as we build and operate businesses.

To start, businesses and their owners/managers should map out a clear charter where any rights may be implicated - in hiring, selling, contracting, delivering, etc at a divine, peer and social level. 

This mapping should be about more than typical compliance exercises, ensuring that it considers the ethical and spiritual. 

It’s a clear ask, “Whose rights am I accountable for at every stage of my value chain?” The tragedy hints towards a general widespread approach of extracting value from a chain that was originally meant to deliver it.

Recognizing and upholding huqooq transforms business from a purely transactional enterprise where typically one side tries to ‘one up’ the other into a field of moral striving where all parties benefit and no one is harmed - even silent stakeholders.

It demands a conscious reorientation:

  •  Before evaluating the profitability of a venture, assess its compliance with the rights of others.
  • Before entering into contractual partnerships, examine whether mutual obligations are honored in the spirit of fairness.
  • Before pursuing organizational growth, consider whether employees, customers, suppliers, and communities are treated justly.

Business, in this light, becomes a site for fulfilling obligations both vertical (toward God) and horizontal (toward humanity).

Rights as our ethical compass
Don’t we know all of this? If we’re making sure we’re following the letter of the law, shouldn’t we be thriving morally?

In the abridged version of his seminal book, The Revival of the Religious Disciplines, Imam Muhammad Al-Ghazali writes, “The correctness of transactions may be judged by jurists, but may contain elements of injustice which expose the perpetrator to the Wrath of God.” 

Such is the fundamental importance of upholding rights in transactions, exchanges and business relationships. Isn’t it ironic that in many markets we have consumer bills of rights but don’t necessarily have stated rights for others?

Maybe some of these bills of rights are tools to bait consumers through a false trust? Only businesses interested in unfair dealings or exploitation use such tactics. Rights are not barriers to enterprise; they are its moral foundation.

This reflection on huqooq prepares the ground for more detailed inquiry. 

Each axis - divine and human - carries profound implications for how organizations are structured, how leadership is exercised, and how true success is ultimately defined.

By restoring huqooq to the center of commercial consciousness, we move beyond narrow metrics of success.

We reconnect business to its highest moral aspiration: fulfilling the sacred trust between humanity, society, and the Creator.

Sajjad Chowdhry is an entrepreneur and C-level executive with over two decades of global experience across venture building, strategy, investment, and strategic finance. A Columbia and Hartford Seminary graduate, he is also a co-founder of DinarStandard

Islamic Finance
Pakistan secures $1 billion Islamic-conventional finance deal

On June 18th, the government of Pakistan announced that its Ministry of Finance had secured a $1 billion five-year syndicated term finance facility structured with Islamic and conventional tranches.

Dubai Islamic Bank was the sole Islamic global coordinator, while Dubai Islamic Bank and Standard Chartered Bank served as mandated lead arrangers and bookrunners. The facility is partially backed by a policy-based guarantee from the Asian Development Bank (ADB) under its “Improved Resource Mobilisation & Utilisation Reform” program.

“This is a landmark transaction for the Government of Pakistan that demonstrates strong support from leading financiers in the region,” the ministry said in a statement, adding that the facility includes Islamic and conventional tranches, with 89% structured to comply with AAOIFI standards.

It is the first financing supported by an ADB Policy-Based Guarantee linked to reforms undertaken by a member country. The ministry stated that the program is designed to foster long-term fiscal resilience and has facilitated Pakistan’s re-entry into international commercial markets, with strong interest from Middle Eastern banks.

In a separate announcement, the ministry stated that it had raised over 1.2 trillion Pakistani rupees through a major government bond auction on Wednesday, including 47 billion rupees from launching a new 15-year zero-coupon bond, the first of its kind in the country.

The zero-coupon bond, which pays a lump sum at maturity instead of regular interest, is designed to reduce short-term repayment pressures and support long-term fiscal planning. Officials said the strong demand reflects investor confidence in Pakistan’s economic outlook and reform measures.

Finance Minister Muhammad Aurangzeb described the financing developments as a major step forward in strengthening Pakistan’s financial system and making it more resilient.

“We are introducing new, smart ways of borrowing that reduce risk and give investors more options,” he said. “Our aim is to manage public debt responsibly, promote Islamic finance, and attract more long-term investment to support the country’s economic growth.”

The ministry reported a more extended average maturity profile for domestic debt, which has increased from 2.7 years in 2023 to 3.75 years. It also noted rising participation by pension funds and insurance companies, helping diversify the investor base.

Efforts are also underway to introduce retail-focused Islamic bond products to encourage public participation and promote financial inclusion.

Officials said the successful auction and strong subscription levels indicate improving investor confidence despite broader global economic uncertainties.

Halal Industry
Indonesia and New Zealand sign halal cooperation agreement

Indonesia and New Zealand signed a halal cooperation agreement on June 16 to ease export procedures for red meat and dairy products. The development comes as the Southeast Asian nation prepares to enforce mandatory halal certification for most consumer goods by the end of 2026.

The arrangement will streamline certification and product assurance processes, allowing New Zealand exporters to better align with Indonesia’s evolving halal regulations.

New Zealand’s Minister for Agriculture and Trade, Todd McClay, said the agreement was part of the government’s broader strategy to expand trade opportunities and boost returns for exporters. He added that Indonesia presented a significant market with a population of 280 million and a growing middle class. Last year alone, it imported more than 1.1 billion New Zealand dollars ($664 million) in New Zealand dairy and meat products. 

The new agreement comes as Indonesia implements the phased rollout of its halal product assurance law, requiring most domestically sold and imported goods to be halal-certified by the end of 2026. Industry stakeholders have previously flagged the certification process as a potential trade barrier if mutual recognition mechanisms are not in place.

According to officials, the cooperation is expected to support smoother market access for New Zealand producers while helping ensure compliance with Indonesia’s regulatory framework. It may also strengthen New Zealand’s positioning as a supplier of high-quality, halal-compliant food products to Indonesia.

Further details of the arrangement, including recognition of halal certifying bodies and implementation timelines, are expected to be clarified in upcoming bilateral discussions.

Islamic Finance
Emirates Islamic takes top honours at Euromoney awards

Emirates Islamic received multiple accolades at the recently concluded Euromoney Islamic Finance Awards 2025. These awards, which included ‘The World’s Best Islamic Digital Bank’, ‘The Middle East’s Best Islamic Digital Bank’, and ‘The UAE’s Best Islamic Digital Bank’, were given in recognition of its performance and innovation in Shariah-compliant digital banking.

The bank’s digital-first strategy has resulted in more than 500,000 customers registering for its EI+ mobile app. Over 90% of eligible customers now bank online or through the mobile platform, with the app logging more than 18 million transactions and an average of 4 million monthly logins. According to Emirates Islamic, expanding app services from 50 at launch to 160 features, including Islamic investment products, has driven a 30% increase in financial transactions.

In addition to its digital banking awards, Emirates Islamic was recognised for its ESG and sukuk activity. The bank received the award for ‘The Middle East’s Best Islamic ESG Deal’ for its $750 million senior unsecured sukuk, which closed with an order book of $2.1 billion and was 2.8 times oversubscribed. The sukuk was positioned as a milestone ESG transaction within the regional Islamic finance market.

The bank also received four corporate banking awards, including ‘The Middle East’s Most Innovative Islamic Deal’ and three UAE-specific distinctions: ‘Islamic Finance Deal of the Year’, ‘Best Islamic ESG Deal’, and ‘Most Innovative Islamic Deal’.

The Euromoney Islamic Finance Awards recognise financial institutions that demonstrate market leadership, product innovation, and contributions to the development of the Islamic banking industry.


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