Regulatory Alerts2023-09-26
Added · Updated
Draft amendments to the Associations with Charitable and Not for Profit Objects Regulations, 2018
The Securities and Exchange Commission of Pakistan proposes substituting clause (xii) of regulation 7 to prohibit companies from exploiting religious susceptibilities and to mandate that Islamic donations, such as zakat and sadaqah, must not be utilized in ways contrary to Shariah principles. Companies are required to obtain a Shariah opinion in the form of a Fatwa from a registered Shariah Advisor for the collection and utilization of such donations, which must be annexed to the audited financial statements. Additionally, new sub-regulation (1A) is added to regulation 13, requiring companies to clearly disclose their policy for receiving, investing, and utilizing Islamic donations, along with the specific amounts and utilization avenues, within their financial statements.