Karachi, Oct 11: A Pakistani financial house today launched the country's maiden Islamic Mutual Fund, conforming with an Islamic Sharia law prohibition on interest, finance minister Shaukat Aziz said. Al-Meezan investment management limited will put its units on the sale on Monday.
"By introducing a Sharia-compliant fund, the management has provided an opportunity to the general public to invest in Islamic (financial) instruments," Aziz said at the launching ceremony.

To start-up the Meezan Islamic Fund, the company has raised 520 million rupees (around nine million dollars) from banks and other financial institutions.
The fund is aimed at meeting the rising demand of investors who want investments based on Islamic laws, the minister said.

Central State Bank of Pakistan monitors Islamic investments to ensure they comply with religious law. Under Islamic law, lenders are not allowed to earn interest and they have to share profit or loss borne by the creditors.
Mutual funds account for a mere two percent of the country's 1.7 trillion rupees of bank deposits.
"I would strongly encourage fund managers to introduce innovative products to attract investment in the mutual fund industry," Aziz urged.
Islamic funds, which also avoid investments in alcohol, betting and tobacco, are worth about $ 250 billion worldwide, according to estimates by Bahrain-based Islamic financial house BNP Paribas Sa.
Bureau Report