Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) held 12^th meeting of its Governance and Ethics Board (AGEB) recently in Karachi, Pakistan. AAOIFI also held a public meeting with the local Islamic finance industry experts. Both meetings were hosted by State Bank of Pakistan at Pearl Continental Hotel, Karachi Pakistan.

During the AGEB meeting, the Board deliberated on and approved the exposure draft of the internal Shari’ah audit standard. The internal Shari’ah audit forms an important component of Islamic Financial Institutions’ (IFIs) governance framework as it promotes internal accountability and transparency, and helps to gain the confidence of all the stakeholders of the IFI. This standard aims to promote a robust internal Shari’ah audit which is the key for the overall soundness and successful internal functioning of an IFI.

The Board also discussed on and approved the basis for conclusions for the Central Shari’ah Board (CSB) and Shariah Compliance Function (CSF) standards.

Al Baraka Bank Pakistan Limited hosted a dinner for the Deputy Chairman and members of AGEB, along with certain key representatives of Islamic finance industry in Pakistan.

Sheikh Esam Eshaq, Deputy Chairman, AGEB who chaired the AGEB meeting, stated that: “We are glad to hold AAOIFI Governance and Ethics board meeting in Pakistan for the first time. It is reassuring to exchange ideas and explore areas for future development with the local industry leaders and experts. There is a great deal of expertise and maturing talent that can fuel growth of the market. We are thankful to State Bank of Pakistan for hosting and facilitating the meetings”.

The next AGEB meeting is scheduled to be held in October 2019.