ISLAMABAD: Pakistan’s first fully digital Islamic banking platform, Aik by BankIslami, said on Tuesday it had partnered with the State Bank of Pakistan to hold financial literacy sessions in a rural community near the capital, part of efforts to expand digital payments and banking in underserved areas.

The initiative forms part of Islamabad’s national shift toward a cashless system, with the central bank describing digitalization as key to widening financial access, reducing cash dependency and aligning the economy with global banking practices.

Under the initiative, a training session was held in Maira Bagwal village where merchants, vendors and small business owners were trained in how digital Islamic banking works and how electronic payments can replace cash-based transactions that still dominate Pakistan’s informal economy.

“Through ‘aik’ we are helping drive the growth of Islamic banking by giving communities simple access to Shariah-compliant digital financial services,” Aik Chief Officer Ashfaque Ahmed said in a statement. “When people adopt digital banking, financial inclusion improves, and more families are able to participate in a fair and transparent financial system.”

Aik and BankIslami said they would continue working with the State Bank to run more awareness drives and onboard local merchants into the digital ecosystem.

Organizers said the session highlighted how electronic payments can make daily transactions safer, faster and more transparent for residents unfamiliar with banking, while ensuring compliance with Islamic finance rules that prohibit interest-based lending.

The statement added that Aik and BankIslami are focused on making Shariah-compliant digital banking simple, accessible and relevant to rural customers, a segment often excluded from formal finance despite Pakistan having one of the world’s fastest-growing Islamic banking markets.

The program falls under Pakistan’s Smart Village initiative, which aims to bring digital tools like mobile wallets, merchant QR payments, online banking and e-government interfaces to remote areas where formal banking penetration remains low.