Muzaffarabad-(Special Correspondent)-An Islamic Banking and Finance awareness programme was organized at the University of Kashmir under the auspices of the Bank of Khyber, while on the same day the Government of Azad Jammu and Kashmir launched a major advances campaign aimed at strengthening the Bank of Azad Jammu and Kashmir (BAJK) and promoting economic growth in the state.
Speaking at the awareness programme, Country Head Islamic Banking, Bank of Khyber, Haleem Khan said that Islamic banking was not merely a change of name but a complete Shariah-based financial system governed by clearly defined procedures for every product, contract and transaction. He noted that earlier attempts to implement Islamic banking in Pakistan during the 1980s did not yield desired results due to lack of awareness, trained human resources and institutional preparedness. However, he said that these gaps were now being addressed at the institutional level.
He highlighted the role of the Supreme Court of Pakistan’s landmark decisions on interest-free banking, which led the State Bank of Pakistan and other institutions to develop a comprehensive framework for Islamic banking. He added that Islamic banking now operates in line with internationally recognized standards, with Shariah boards, Shariah audits and compliance with global Islamic financial institutions. He explained that financing under Islamic banking is carried out through Shariah-compliant modes such as Mudarabah, Musharakah, Ijarah, Salam and Istisna.
Addressing the gathering, Bank of Khyber Area Manager Muhammad Zahid Khan said that Islamic banking ensures transparency in financing, with no scope for interest, as transactions are conducted under partnership, trade or leasing principles. He stated that the Bank of Khyber was playing a key role in converting its conventional branches and windows into Islamic banking, adding that public confidence in Islamic banking was steadily increasing. He encouraged students to pursue education and careers in Islamic banking, terming it a fast-growing field with vast professional opportunities.
Former Head Islamic Banking, Bank of Azad Jammu and Kashmir, Muazullah Khan, informed participants that BAJK had established a Shariah Board and an Islamic Banking Division, and that formal Islamic banking operations would begin soon after the availability of modern software with Islamic banking modules. He explained that Islamic banking is based on risk-sharing, where depositors act as Rab-ul-Maal and the bank functions as manager, with profits distributed according to pre-agreed ratios.
The programme was attended by Director Social and Digital Media Information Department Muhammad Bashir Mirza, HOD Management Sciences Aftab Ahmed Kanth, Deputy Chief State Bank Naila Mehboob, Trade Union President Shaukat Nawaz Mir and Manager Bank of Khyber Muzaffarabad Branch Shagufta Iqbal, among others. Participants termed the session informative and timely, expressing hope that such initiatives would promote awareness of halal financial systems among the youth.
Meanwhile, AJK Finance Minister and Chairman Bank of Azad Jammu and Kashmir, Chaudhry Qasim Majeed, inaugurated the Advances Campaign of BAJK by cutting the ribbon at the bank’s head office in Muzaffarabad. He also chaired a high-level meeting of the Commercial and Retail Banking Division and opened his personal bank account at BAJK to express confidence in the institution.
Addressing the ceremony, the chairman said that socio-economic development of Azad Kashmir was a top priority of the government and strengthening BAJK was essential to achieving this goal. He said the advances campaign aimed at promoting business activities and providing easy and affordable financing to youth, women, agriculture, trade and SMEs. He emphasized that granting scheduled bank status to BAJK was among the government’s key priorities.
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During the meeting, President and CEO BAJK Shahid Shehzad Mir briefed participants on the bank’s financial performance, strategic goals and future plans. He informed that BAJK earned Rs 3.420 billion profit from 2006 to 2022, while Rs 4.568 billion was earned between 2023 and September 2025 alone. He said the bank’s total assets stood at Rs 58 billion, deposits at Rs 47 billion, and advances at Rs 5.381 billion. The capital adequacy ratio was reported at 47.6 percent, significantly higher than the State Bank’s requirement, while non-performing loans had reduced to 4.3 percent.
He added that all major requirements for scheduled bank status had either been completed or were at the final stage, thanking the AJK government for providing Rs 2.9 billion equity, raising the bank’s capital to Rs 10 billion. He also highlighted ongoing implementation of a modern core banking system and enhanced staff training initiatives.
On the occasion, the CEO presented a commemorative shield to Chairman Chaudhry Qasim Majeed in recognition of his leadership and support for the bank’s growth. The chairman urged the public to open accounts with BAJK, stating that the bank was progressing rapidly and gaining public trust. Senior divisional and regional heads of BAJK were also present at the events.
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