Officials of the State Bank of Pakistan (SBP) underscored the critical role of Islamic banking institutions in achieving the country’s transition to a fully Shariah-compliant banking system by December 2027 and urged the banks to further strengthen their outreach and performance in line with national objectives.
Islamic banks urged to accelerate efforts for transition to Shariah-compliant banking system by 2027
FAISALABAD, Jun 05 (APP): Officials of the State Bank of Pakistan (SBP) underscored the critical role of Islamic banking institutions in achieving the country’s transition to a fully Shariah-compliant banking system by December 2027 and urged the banks to further strengthen their outreach and performance in line with national objectives.
These remarks were made during the fourth and final quarterly meeting of the Regional Oversight Committee (ROC) for FY2025-26, organized by State Bank of Pakistan (SBP) Banking Services Corporation (BSC) Faisalabad through zoom.
The ROC, established across 16 field offices of the State Bank of Pakistan, is tasked with promoting Islamic banking throughout the country in accordance with the policy directions of the Government of Pakistan.
The committee comprises representatives of five Islamic banking institutions including Meezan Bank, Dubai Islamic Bank Pakistan, Askari Islamic Bank, Bank Alfalah Islamic and MCB Islamic Bank.
The meeting was chaired by Chief Manager (A) Niamatullah Khan while Divisional Head Financial Inclusion Division Ahmad Bilal Arif led the performance review session.
During meeting, Ahmad Bilal Arif conducted a detailed assessment of the performance of each member bank regarding the promotion and expansion of Islamic banking services in the region.
He appreciated the banks that demonstrated strong performance and notable progress during the fiscal year while advising under-performing institutions to adopt corrective measures and enhance their efforts to meet assigned targets.
Addressing the participants, he emphasized that Islamic banks have a pivotal role in supporting Pakistan’s transition towards a comprehensive Islamic banking system and must continue expanding customer awareness, financial inclusion and Shariah-compliant banking services across all segments of society.
He reiterated that the banking sector is moving towards the goal of a full-fledged Islamic banking system by December 2027 in compliance with the directives of the Federal Shariat Court and stressed the need for coordinated efforts by all stakeholders to achieve the milestone within the stipulated timeframe.
The participants reviewed progress made during the fiscal year, exchanged views on challenges and opportunities in the Islamic banking sector, and reaffirmed their commitment to supporting the national agenda for the promotion of Islamic finance and banking in Pakistan.
