Pakistan to launch Shariah-compliant certificates worth $178.6 million this month

Pakistan’s State Minister for Finance Ali Pervaiz Malik speaks during a session of National Assembly in Islamabad, Pakistan on September 3, 2024. (Ali Pervaiz Malik/Facebook/File)
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Updated 11 September 2024
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Pakistan to launch Shariah-compliant certificates worth $178.6 million this month

  • State minister highlights government’s commitment to promoting Islamic banking 
  • Central bank has set target to increase Pakistan’s Islamic banking share to 35% by 2025

ISLAMABAD: Pakistan’s State Minister for Finance Ali Pervaiz Malik said on Tuesday new Shariah-compliant certificates worth $178.6 million would be launched this month to facilitate lending activity under an interest-free system, state-run media reported.

A Shariah-compliant certificate is a document issued by the Federal Shariah Court verifying that a financial product or transaction conforms to Islamic principles and laws. Last year, the Securities and Exchange Commission of Pakistan (SECP) issued the first-ever Shariah-compliant certificate to two real estate investment trusts. In April, it also issued a license to the first Shariah-compliant brokerage house in Pakistan.

“In response to the Calling Attention Notice, Minister of State for Finance Ali Pervaiz Malik said new Shariah-compliant certificates worth $178.6 million will be launched this month,” Radio Pakistan said on Tuesday, as the minister briefed the National Assembly about the government’s “commitment to promoting Islamic banking” in the country. 

Earlier this week, Pak-Qatar Family Takaful Limited (PQFTL), a leading Pakistani Shariah-compliant family insurance provider, introduced an instant withdrawal facility for its customers, which would allow participants to withdraw partial funds in case of emergencies with ease and instant access through the company’s mobile app or its online portal. 

Last year, Pakistan’s central bank set a target to increase the share of Islamic banking in the country to 35% by 2025.

In 2021, the Federal Shariat Court, which determines whether Pakistani laws comply with Islamic law, directed the government to eliminate interest from the country’s banking system by 2027. 

At present, the share of Islamic banking in the overall commercial banking system in the country is 20%.

Pakistan has six full-fledged Islamic banks offering a wide range of products and the annual growth rate of Islamic banks’ assets and deposits has been 25% and 22% respectively over the last five years, according to central bank data.


UN says 270,000 Afghans have returned from Iran, Pakistan this year

Updated 10 March 2026
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UN says 270,000 Afghans have returned from Iran, Pakistan this year

  • UNHCR says 110,000 Afghans returned from Iran while 160,000 returned from Pakistan since start of 2026
  • Return numbers seem to have risen since Gulf war erupted on Feb. 28, says UNHCR official in Afghanistan

GENEVA: Some 270,000 Afghans have returned to their country from Pakistan and Iran so far this year, the UN said Tuesday, warning that the escalating Middle East war risked pushing the numbers higher.

UNHCR, the United Nations’ refugee agency, said that 110,000 Afghans had returned from Iran and another 160,000 had returned from Pakistan since the start of 2026.

And the numbers seem to have risen since the Middle East erupted on February 28, with the United States and Israel unleashing a barrage of strikes on Iran, and Tehran responding with drone and missile strikes on Israeli and US interests across the region.

Since then, there have been some 1,700 returns from Iran to Afghanistan each day, Arafat Jamal, UNHCR’s representative in Afghanistan, told reporters in Geneva.

Speaking from Islam Qala, on the Afghan-Iranian border, he said the situation there was “deceptively calm.”

“Returns are orderly but freighted with tension and apprehension,” he said, adding that with the hostilities elsewhere escalating, “I do fear there is more to come.”

“We are preparing for massive returns.”

He pointed out that Afghanistan was “facing the ramifications of what is happening with Iran,” while clashes have erupted along the Afghan border with Pakistan.

The new Middle East war, he warned, was “layering itself on top of an existing war on another frontier,” Jamal said.

UNHCR highlighted that the latest crises came after returns to Afghanistan had already been “exceptionally high” in recent years.

More than five million Afghans had returned from neighboring countries in the past two years, including 1.9 million returning from Iran last year alone.

Jamal warned that “many Afghan families are now facing cycles of displacement: first forced to flee Afghanistan, later displaced again inside Iran due to conflict, and now returning once more to Afghanistan.”

“And upon return in Afghanistan, the triply-displaced enter a spiral of precarity and uncertainty.”
Returns from Pakistan had meanwhile stabilized in recent weeks, as the main crossing point at Torkham remained closed due to the tensions there, Jamal said.

But he warned that “movements could increase sharply once the border reopens.”

UNHCR and the UN children’s agency UNICEF said Tuesday they were working to strengthen their capacity to operate at the borders and within Afghanistan.

But “given the scale of returns and the financial constraints facing humanitarian operations, additional support will be needed if arrivals increase,” UNHCR said, without specifying the amount needed.