UAE’s Mashreq launches Shariah-compliant digital banking services in Pakistan

Mashreq Bank officials gesture for a group photograph with Pakistan Prime Minister during the launching of its digital banking services in Islamabad on September 16, 2025. (Handout/Mashreq Bank)
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Updated 17 September 2025
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UAE’s Mashreq launches Shariah-compliant digital banking services in Pakistan

  • Mashreq commits $100 million to Pakistan digital bank, aims to boost inclusion, remittances
  • New services aim to drive remittances, financial inclusion and job creation over next decade

KARACHI: Leading UAE lender Mashreq on Tuesday announced the launch of its digital banking services in Pakistan, offering fully Shariah-compliant online solutions as part of a $100 million commitment to the South Asian country.

Pakistan, where nearly 70 percent of adults remain outside the formal financial system, has been encouraging foreign and local lenders to expand digital banking to increase inclusion and attract investment. The State Bank of Pakistan introduced a new regulatory framework in 2022 and has since granted licenses to several digital banks, including Mashreq, as part of efforts to modernize the sector.

Mashreq, Dubai’s third-largest lender by assets, registered in Pakistan in 2023 before receiving central bank approval to launch Islamic banking operations last year.

The bank said its new platform will be powered by “state-of-the-art technology, seamless customer experience and a strong commitment to responsible banking.”

“Mashreq Bank Pakistan aims to offer unparalleled digital banking solutions, built to be fully Shariah compliant,” the bank said in a statement, adding that it aimed to drive digital transformation, financial inclusion and job creation over the next five to ten years.

Pakistani customers will be able to access zero-fee ATM withdrawals, free debit cards and AI-driven risk controls. Overseas Pakistanis in the UAE will also be able to open accounts back home and remit funds seamlessly through the new platform.

On the occasion, Mashreq Chairman Abdul Aziz Al Ghurair highlighted the bank’s decades-long relationship with Pakistan.

“Dating back to the establishment of our representative office in Karachi in 1978, we start a new chapter in our journey, grounded in trust, shaped by regional aspirations and backed by long-term cooperation,” he said.

“Pakistan is a story of resilience and sustained ambition and we’re here because the future is promising and we want to help build it.”

Mashreq Bank Pakistan Chairman Fernando Morillo said the institution’s vision was to create an ecosystem where consumers, small and medium enterprises and overseas Pakistanis could connect to financial opportunities.

“Pakistan marks the first international market where we are deploying Mashreq’s full-service digital retail bank,” he said.

The bank’s global capability center in Pakistan already employs more than 415 people across technology, compliance, human resources and customer experience.

Pakistan, with a $350 billion economy and a large overseas workforce -more than 2.5 million Pakistanis live in the UAE alone — relies heavily on remittances, much of which flows through the banking system. Mashreq said its new platform would help streamline remittance inflows while providing digital-first solutions to local consumers.

The bank’s statement said Mashreq had committed $100 million by this year to support its operations in Pakistan through the digital bank and global capability center.


Pakistan puts border districts on high alert amid Iran protests — official

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Pakistan puts border districts on high alert amid Iran protests — official

  • The development comes as Iranian authorities try to suppress protests over faltering economy, with over 2,600 killed
  • Militancy in Balochistan has declined following the return of nearly 1 million Afghans, the additional chief secretary says

QUETTA: Pakistan has heightened security along districts bordering Iran as violent protests continue to engulf several Iranian cities, a top official in Pakistan’s southwestern Balochistan province said on Thursday, with authorities stepping up vigilance to guard against potential spillover.

The development comes as Iranian authorities try to suppress protests, which began late last month over the country’s faltering economy and the collapse of its currency, with more than 2,600 killed in weeks of violence in the Islamic republic.

The clampdown on demonstrations, the worst since the country’s 1979 Islamic revolution, has drawn threats from the United States (US) of a military intervention on behalf of the protesters, raising fears of further tensions in an already volatile region.

Pakistan, which shares a 909-kilometer-long border with Iran in its southwest, has said that it is closely monitoring the situation in the neighboring country and advised its citizens to keep essential travel documents with them amid the unrest.

“The federal government is monitoring the situation regarding what is happening in Iran and the provincial government is in touch with the federal government,” Hamza Shafqaat, an additional chief secretary at the Balochistan Home Department, told

Arab News in an exclusive interview on Thursday.

“As far as the law and order is concerned in all bordering districts with Iran, we are on high alert and as of now, the situation is very normal and peaceful at the border.”

Asked whether Islamabad had suspended cross-border movement and trade with Iran, Shafqaat said trade was ongoing, but movement of tourists and pilgrims had been stopped.

“There were few students stuck in Iran, they were evacuated, and they reached Gwadar,” he said. “Around 200 students are being shifted to their home districts.”

SITUATION ON PAKISTAN-AFGHANISTAN BORDER

Pakistan’s Balochistan province has long been the site of an insurgency by ethnic Baloch separatists and religiously motivated groups like the Tehreek e Taliban Pakistan (TTP). Besides Iran, the province shares more around 1,000-kilometer porous border with Afghanistan.

Islamabad has frequently accused Afghanistan of allowing its soil for attacks against Pakistan, an allegation denied by Kabul. In Oct., Pakistan and Afghanistan engaged in worst border clashes in decades over a surge in militancy in Pakistan. While the neighbors agreed to a ceasefire in Doha that month, relations between them remain tensed.

Asked about the government’s measures to secure the border with Afghanistan, Shafqaat said militancy in the region had declined following the return of nearly 1 million Afghan nationals as part of a repatriation drive Islamabad announced in late 2023.

“There is news that some of them keep on coming back from one border post or some other areas because we share a porous border and it is very difficult to man every inch of this border,” he said.

“On any intervention from the Afghanistan side, our security agencies which are deputed at the border are taking daily actions.”

LAW AND ORDER CHALLENGE

Balochistan witnessed 167 bomb blasts among over 900 militant attacks in 2025, which killed more than 400 people, according to the provincial government’s annual law and order report. But officials say the law-and-order situation had improved as compared to the previous year.

“More than 720 terrorists were killed in 2025 which is a higher number of operations against terrorists in many decades, while over a hundred terrorists were detained by law enforcement agencies in 90,000-plus security operations in Balochistan,” Shafqaat said.

The provincial government often suspended mobile Internet service in the southwestern province on various occasions last year, aimed at ensuring security in Balochistan.

“With that step, I am sure we were able to secure hundreds of lives,” Shafqaat said, adding it was only suspended in certain areas for less than 25 days last year.

“The Internet service through wireless routers remained open for the people in the entire year, we closed mobile Internet only for people on the roads because the government understands the difficulties of students and business community hence we are trying to reduce the closure of mobile Internet.”