State Bank of Pakistan (SBP) Governor Jameel Ahmad has called for renewed efforts to simplify and expand the Sukuk market in Pakistan, urging stakeholders to resolve structural challenges to support the growth of Islamic finance. Speaking at the National Islamic Economic Forum 2025 held in Karachi, the governor emphasized the need to ease the issuance process of Sukuks—Shariah-compliant financial instruments—and shift more of the country’s public debt toward Islamic alternatives.
“We are working towards simplifying Sukuk structure and easing the process of issuing new Sukuks,” said Ahmad. “The central bank and the government are jointly engaged in efforts to promote Sukuks as a viable financial instrument, especially to enhance the Shariah-compliant product suite for investors.”
Ahmad stressed the need for collaborative action among financial stakeholders to remove barriers to Sukuk issuance and unlock greater investment potential within the Islamic finance ecosystem. “We must address the underlying issues together so that we can issue more Sukuks and provide products to investors that are compliant with the Shariah,” he said.
Highlighting macroeconomic developments, Ahmad noted that SBP’s foreign exchange reserves had grown from $3 billion in 2022 to over $11 billion, a feat achieved without relying on external loans. He added that the country’s external debt had fallen by approximately $1–1.5 billion during the same period, reducing the total external debt to below $100 billion. He projected that the positive effects of these improvements would become visible in the near future.
The governor also shared an optimistic outlook for remittance inflows, attributing much of the growth to the overseas Pakistani workforce and the rapidly expanding freelancing sector. “Workers’ remittances, which stood at $30.3 billion last year, are expected to reach nearly $38 billion this fiscal year,” he stated.
Turning to the state of Islamic banking in the country, Ahmad reported that total Islamic banking assets had reached Rs11.5 trillion by March 2025, accounting for 21.1% of Pakistan’s total banking assets. Deposits in Islamic banks stood at Rs8.8 trillion, signaling a steady upward trajectory for the sector.
“Although much work remains, we have made significant progress,” Ahmad said. “The share of Islamic banking is gradually increasing, and it is vital that Islamic banks now extend their services into underserved yet high-potential areas such as SMEs, agriculture, housing, and microenterprises.” He also called on Islamic Banking Institutions (IBIs) to take concrete steps to expand their outreach.
Addressing the digitisation of Pakistan’s economy, the SBP governor highlighted key technology-driven initiatives including the national micropayment gateway, RAAST. “Through Raast, one can transfer funds from one part of the country to another in six seconds,” he said. “This instant transfer capability has been crucial to accelerating our digital transformation efforts.”
Ahmad further revealed that the number of digital transactions in the country increased from 5.5 billion in 2023 to 7.5 billion in 2024, reflecting a significant year-on-year growth of 38%.
In closing, Governor Ahmad reaffirmed the central bank’s commitment to nurturing a robust Islamic finance ecosystem and driving digital innovation across Pakistan’s financial landscape, positioning the country for more inclusive and tech-driven economic growth.