State Bank of Pakistan has granted in-principle approval to Samba Bank Limited to commence Shariah-compliant operations, signaling a major step in the bank’s strategic shift toward full Islamic banking. The announcement was made through an official disclosure to the Pakistan Stock Exchange.
The approval allows Samba Bank to proceed with its conversion plan from a conventional banking structure to a fully Islamic financial institution, in line with the roadmap submitted to regulators earlier this year. The proposal for conversion was initially communicated to the central bank on March 13, 2025, as part of the bank’s broader strategic vision to align with the country’s evolving financial landscape.
The SBP’s in-principle approval is contingent upon Samba Bank meeting a series of regulatory conditions and compliance requirements. Once these prerequisites are fulfilled, the bank will be formally allowed to begin offering a complete suite of Islamic banking products and services. This includes establishing Shariah-compliant operational frameworks, governance structures, and product portfolios tailored to Islamic finance principles.
The development reflects a growing momentum in Pakistan’s banking sector as more institutions transition toward Islamic banking. This shift aligns with the country’s strategic objective of moving towards a fully Shariah-compliant financial system in the coming years. The central bank has been actively encouraging this transformation by creating a supportive regulatory environment for both existing Islamic banks and conventional banks looking to convert.
Industry observers note that Samba Bank’s entry into Islamic banking could strengthen competition in the sector, creating more choices for consumers seeking Shariah-compliant financial solutions. It may also contribute to expanding the overall market share of Islamic banking in Pakistan, which has been growing steadily over the past decade.
For Samba Bank, this approval represents a pivotal step in redefining its business model. The bank will now focus on implementing a robust Shariah governance structure, including appointing Shariah scholars, establishing a dedicated Islamic banking division, and aligning internal systems with Islamic financial standards.
The transition toward Islamic banking is also seen as a strategic move to cater to the increasing demand from both retail and corporate clients who prefer interest-free banking. Analysts believe this shift could help the bank tap into new growth opportunities while aligning with national financial inclusion goals.
The SBP’s decision further reinforces its commitment to supporting a diversified and resilient banking ecosystem in Pakistan. By enabling more banks to adopt Islamic banking frameworks, the regulator aims to build a more stable and inclusive financial system that serves a broader base of customers.
Follow the PakBanker Whatsapp Channel for updated across Pakistan’s banking ecosystem.