ISLAMABAD: Pakistan’s Islamic finance sector is gaining momentum as the country’s main state-run savings institution reported strong inflows into Shariah-compliant products, the APP news agency reported on Monday, reflecting rising demand for interest-free investment options in the world’s second-largest Muslim-majority country.
The Central Directorate of National Savings (CDNS) recorded Rs23.6 billion ($84 million) in Islamic finance inflows between July 1, 2025, and Jan. 23, 2026, the APP report said. The performance brings the institution close to its Rs25 billion ($89 million) Islamic finance target for the ongoing fiscal year ending in June.
A senior CDNS official described the growth as a sign of increasing investor confidence in Shariah-compliant savings instruments, which prohibit interest and emphasize ethical investment principles.
“We have revived and reinforced our focus on Islamic finance during the current fiscal year, which is expected to support sustainable growth of Pakistan’s Islamic economy,” the official was quoted as saying by APP.
He said the issuance of Islamic bonds and Shariah-compliant savings certificates had played a central role in attracting investors seeking halal returns, while also helping mobilize long-term national savings.
The latest inflows build on CDNS’s recent expansion in Islamic finance. In the previous fiscal year 2024–25, the directorate met its Islamic investment target of Rs24 billion ($86 million). Earlier, in FY2023–24, it mobilized around Rs75 billion ($268 million) through Islamic bonds alone, laying the groundwork for broader institutional reforms and product diversification.
Islamic finance has become a significant part of the global financial system, with countries across the Middle East and Southeast Asia using Shariah-compliant instruments to attract savings and investment. In Pakistan, officials see the sector as a way to broaden financial inclusion, promote a savings culture, and offer alternatives to conventional interest-based products.
Beyond Islamic finance, CDNS has also posted strong overall savings performance. By the end of Dec. 2025, it had mobilized Rs700 billion ($2.5 billion) toward its total savings target for the current fiscal year, APP reported.
The institution is undergoing reforms aimed at digitizing services, improving efficiency and introducing new financial products to meet changing investor needs.











