The State Bank of Pakistan (SBP) has granted in-principle approvals to five financial institutions. This step will allow them to start Islamic banking operations in the country.
Under this move, SBP Allows selected institutions to expand into Shariah-compliant banking. The approved entities include Samba Bank Limited, HBL Microfinance Bank, ASA Microfinance Bank, Sindh Microfinance Bank, and Pak Libya Holding Company.
The central bank stated that it is working closely with these institutions. It is providing regulatory guidance and technical support. This will help them build strong and compliant Islamic banking systems.
Earlier in 2025, SBP Allows more players to enter the sector. These included Mashreq Bank, Mobilink Microfinance Bank, and LOLC Microfinance Bank. This shows a steady rise in participation across the industry.
According to SBP, interest in Islamic banking is growing fast. Commercial banks and microfinance institutions are showing strong interest. This growth is driven by rising public demand for Shariah-compliant financial services.
The SBP’s Financial Stability Review also highlights this trend. It shows that Islamic finance is expanding across Pakistan. Financial institutions are responding to changing market needs.
To support further growth, SBP has launched awareness campaigns. These campaigns use social media to educate people about Islamic banking. The aim is to increase understanding among different groups in society.
At present, Pakistan has a wide Islamic banking network. There are 22 institutions offering such services. This includes six full-fledged Islamic banks. Another 16 conventional banks provide Islamic banking windows.
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Overall, SBP Allows more institutions to enter this sector, signaling continued growth. This move is expected to strengthen the Islamic finance system in Pakistan.
