ISLAMABAD: The State Bank of Pakistan (SBP) on Friday said the Islamic Banking Industry (IBI) had recorded the “highest ever growth” in Pakistan as its assets surpassed the Rs5 trillion mark to reach Rs5,577 billion with the highest ever increase of Rs1,308 billion.
A portion of the demand for banking services in Pakistan is faith-sensitive and there is a large market for Shariah-compliant services. Over the years, the Islamic banking industry has established a strong footing and gained a sizable share of the banking industry.
Twenty-two Islamic banking institutions currently operate in Pakistan: five Islamic banks and 17 conventional banks with standalone Islamic banking branches.
“The Islamic Banking Industry (IBI) has reached new peaks during CY21 [Calendar Year 2021] as its assets surpassed the 5 trillion mark to reach Rs5,577 billion with the highest ever increase of Rs1,308 billion, whereas deposits reached at Rs4,211 billion with an increase of Rs822 billion,” the central bank said in its report.
The report said in the last calendar year, the Islamic Banking Industry grew by 30.6 percent, while deposits increased by 24.2 percent.
“The increase in assets of IBI was driven by both financing to the private and public sector and investments in Shariah compliant securities,” the central bank added.
The growth in deposits is also owed to the fact that the availability of Islamic banking services increased in the country with the addition of 500 new Islamic banking branches. The total number of branches now stands at 3,956 across 125 districts, which is around 25 percent of the total number of commercial bank branches in the country.
“State Bank has also been recognized as the best Central Bank of 2021 across the world in promoting Islamic finance by the Islamic Finance News (IFN), an arm of RED money Group, Malaysia. Previously, SBP was bestowed with this coveted award for the year 2015, 2017, 2018, and 2020,” the report read.
Islamic banking assets record highest ever growth in 2021 — Pakistan central bank
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Islamic banking assets record highest ever growth in 2021 — Pakistan central bank
- Islamic banking industry has established a strong footing and gained a sizable share of the banking industry in Pakistan
- Availability of Islamic banking services has increased in Pakistan with addition of 500 new Islamic banking branches
Pakistan cabinet reviews private Hajj policy as mandatory pilgrim training enforced
- Cabinet sends draft Private Hajj Policy 2027–2030 to committee for further review
- Religion minister warns pilgrims who skip mandatory training will be barred from Hajj
ISLAMABAD: Pakistan’s federal cabinet on Wednesday reviewed proposals for stricter oversight of private Hajj operators, as authorities separately warned that pilgrims who failed to complete mandatory training would be barred from performing Hajj next year.
The cabinet, chaired by Prime Minister Shehbaz Sharif, was briefed on a draft Private Hajj Policy for 2027–2030, which includes third-party registration and scrutiny of private Hajj operator companies, according to a statement from the Prime Minister’s Office.
“The Federal Cabinet directed that the draft Private Hajj Policy 2027–2030, presented by the Ministry of Religious Affairs and Interfaith Harmony regarding third-party registration and scrutiny of private Hajj operators’ companies, be referred to the Hajj Policy Committee for further deliberation in light of the views of Cabinet members,” the prime minister’s office said in a statement.
The development comes as Religious Affairs Minister Sardar Muhammad Yousaf said on Wednesday pilgrims who failed to attend both phases of mandatory Hajj training would not be allowed to perform the pilgrimage.
“Pilgrims who do not complete mandatory Hajj training will be barred from performing Hajj,” the ministry quoted Yousaf as saying during a training workshop in Islamabad.
Around 120,000 pilgrims are currently undergoing training at 200 locations nationwide, with the second phase scheduled to begin after Ramadan. The training aims to familiarize pilgrims with Saudi laws, Hajj rituals and safety protocols to prevent accidents in crowded areas.
Saudi Arabia has allocated 179,210 pilgrims to Pakistan for Hajj 2026, including about 118,000 seats under the government scheme, while the remainder will be handled by private tour operators.
Under Pakistan’s government Hajj package, the estimated cost ranges from Rs1.15 million to Rs1.25 million ($4,049.93 to $4,236), subject to final agreements with service providers.
