The Securities and Exchange Commission of Pakistan (SECP) has made it obligatory for charitable and non-profit organizations to secure a Fatwa, a Shariah opinion, from a registered Shariah Advisor to accept and use Islamic donations.
SECP introduced S.R.O. 1513(I)/2023 to amend the 2018 Regulations for Associations with Charitable and Not-for-Profit Objectives.
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As per the revised regulations, organizations must obtain a Fatwa from a Shariah Advisor registered with the Commission for the collection and utilization of Islamic donations. This Fatwa must be attached to the organization’s audited financial statements.
The organizations are prohibited from using Islamic donations, such as zakat or sadaqah, in a manner that contradicts Shariah principles or offends religious sensibilities.
Additionally, these organizations must transparently disclose their policies regarding the receipt, investment, and utilization of Islamic donations in their financial statements, along with specifying the amount of such donations and their designated uses.
