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 rejects India’s ‘irresponsible assertions’ after FM Jaishankar’s ‘bad neighbors’ remarks

Updated 03 January 2026
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Pakistan rejects India’s ‘irresponsible assertions’ after FM Jaishankar’s ‘bad neighbors’ remarks

  • Indian FM Jaishankar accused Pakistan of fomenting militancy, backed New Delhi’s decision to put Indus Waters Treaty in abeyance
  • Islamabad calls the remarks an attempt to deflect attention from India’s ‘troubling record as a neighbor,’ vows to safeguard rights

ISLAMABAD: Pakistan on Saturday rejected “irresponsible assertions” made by Indian External Affairs Minister S. Jaishankar after his remarks about “bad neighbors” and the 1960 Indus Waters Treaty (IWT) between the two countries.

Jaishankar mentioned about “bad neighbors” at an event in Madras on Friday and said that New Delhi had a right to defend itself. “When you have bad neighbors... if you look to the one to the West, if a country decides that they will deliberately, persistently, unrepentantly continue with terrorism, we have a right to defend our people,” he was quoted as saying by The Hindu newspaper.

The remarks came months after New Delhi blamed Pakistan for a militant attack in Indian-administered Kashmir and conducted missile strikes inside Pakistan. Islamabad, which denied involvement in the Kashmir attack, responded to the strikes, leading to a four-day military conflict that saw the use of armed drones, fighter jets and artillery between the neighbors in May.

In a statement, Pakistani foreign office spokesman Tahir Andrabi said Islamabad firmly rejects the irresponsible assertions made by the Indian external affairs minister, describing the remarks as an attempt to deflect attention from India’s own “troubling record as a neighbor that promotes terrorism and contributes to regional instability.”

“India’s documented involvement in promoting terrorist activities in the region, particularly in Pakistan, is well known. The case of Commander Kulbhushan Jadhav remains a stark example of organized, state-sponsored terrorism directed against Pakistan,” he said.

“Equally concerning are recurring instances of extraterritorial killings, sabotage through proxies, and covert support to terrorist networks.”

Jadhav, an Indian navy officer who Islamabad said had been working with Indian spy agency, RAW, when Pakistani agencies arrested him in Balochistan in 2016. He was later sentenced to death by a Pakistani military court for alleged espionage. India disputes the conviction and has challenged it at the International Court of Justice.

Pakistan and India routinely accuse each other of supporting militant groups waging attacks against the other. The two countries have fought multiple wars, including two of them over the disputed region of Kashmir, since their independence from British rule in 1947. Both rule the region in part but claim it in full.

Jaishankar also spoke on Friday about the IWT that divides control of the Indus basin rivers between the neighbors and ensures water for 80 percent of Pakistani farms. India announced in April, following the Kashmir attack, that it was putting the 1960 World Bank-mediated treaty in abeyance.

“Many years ago, we agreed to a water-sharing arrangement — the belief was it was gesture of goodwill — because of good neighborliness we were doing it … but if you have decades of terrorism, there is no good neighborliness and you don’t get the benefit of good neighborliness,” Jaishankar was quoted as saying.

Pakistan foreign office spokesman Andrabi said the IWT is an international agreement concluded in good faith and at a considerable cost.

“Any unilateral violation of the Treaty by India would undermine regional stability and call into question its credibility as a state that claims to respect international legal obligations,” he said.

“Pakistan will take all necessary measures to safeguard its legitimate rights under the Treaty.”