The State Bank of Pakistan (SBP) has granted in-principle approvals to five financial institutions to launch Islamic banking operations.
According to the central bank, the approved institutions include Samba Bank Limited, HBL Microfinance Bank, ASA Microfinance Bank, Sindh Microfinance Bank, and Pak Libya Holding Company.
The SBP said it has been working closely with these institutions, offering regulatory guidance and technical support to help them establish Islamic banking operations in an effective and compliant manner.
Earlier in 2025, the regulator also allowed Mashreq Bank, along with Mobilink Microfinance Bank and LOLC Microfinance Bank, to begin Shariah-compliant banking services, reflecting a steady increase in sector participation.
The central bank noted that interest in Islamic banking continues to rise across commercial banks, microfinance institutions, and development finance entities, driven by strong public demand for Shariah-compliant financial products and services.
According to the SBP’s Financial Stability Review, this trend highlights both the expansion of Islamic finance in Pakistan and the growing responsiveness of financial institutions to evolving market needs.
To further support sector growth, the SBP has also facilitated a nationwide awareness campaign leveraging social media platforms to promote understanding of Islamic banking among different segments of society.
At present, Pakistan’s Islamic banking network consists of 22 institutions, including six full-fledged Islamic banks, while 16 conventional banks operate dedicated Islamic banking windows alongside their conventional services.
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Great news. Being as a banking professional both in Islamic and conventional banking, I sincerely wish best and smooth transformation.