Speaking on the occasion, Qazi Hussain Ahmad attributed opening of the branch to plantation of an Islamic branch in an otherwise un-Islamic system. He accused the federal government of creating hurdles in the Islamisation of the banking system. However, he said the NWFP government is determined to remove these hurdles.
He said according to the constitution there would be no interest-based banking in the country. But, he said, the government is even creating hurdles in the implementation of the Federal Shariat Court (FSC) decision.
BoK managing-director Qazi Munirul Haq said Islamic banking is a popular economic system. He said about 250 Islamic monetary institutions are operating in 70 countries with deposits worth $220 billion.
He expressed the hope all branches of the bank would be converted into Islamic branches by the end of 2006. Dispelling apprehension of losses in the Islamic banking, he said the bank has established a consolidation fund to fill losses incurred due to the new system. He thanked the MMA leadership for introducing the Islamic banking.
Senior NWFP minister Sirajul Haq informed the provincial government has signed an agreement with the federal government over payment of net hydel profit to the province. He said, the provincial government has returned Rs 2 billion immature loans, but the federal government has yet to adjust it. Later, Qazi Hussain Ahmad opened his account in the branch.