Dr Ishrat appreciated the role of the institute in bringing top of the line international scholars for training.
He hoped that IBP would continue to bring in such scholars for the benefit of bankers in Pakistan.
Earlier, the Chief Executive of IBP, Saleem Umar, welcomed the participants and outlined its role in the training and development of human resources capable of meeting the current day challenges.
On the occasion Dr Humayun Dar from Loughborough University, UK gave an in-depth presentation on Islamic Banking.
He said it is not true that Morabaha-based financing in Islamic banking is a sham. It is not only permissible but is also an effective mode of financing and there was unanimity of Shariah scholars on this.
He explained the role of Shariah and application of Islamic laws.
He described the role of Shariah Boards as scrutinising documents and structures and Shariah supervision and monitoring. He said Shariah scholars do not structure products. They are not employees of banks but only advisors.
He said it is not true that Morabaha is the most widely used mode of financing in Islamic banking. In fact the most widely used mode of financing is Modaraba-Modaraba on the liabilities side and on the assets side.
Dr Humayun said it is also not true that Islamic banking cannot/ does not offer Shariah-complaint working capital financing. He said there are different ways of offering working capital financing like Tawarruq and option-based mode.
He explained in detail the option-based working capital financing and eloquently clarified some myths about Islamic Banking.
Islamic Banking, he said, provides a viable alternative to interest-free banking. Its future lies in dual banking systems for another decade or so.
Dr Humayun said it should not be linked with the Islamisation of the whole economy. It can only survive if it maintains its separate identity.