Mashreq Bank Pakistan, one of the nation’s licensed retail digital banks, has launched a groundbreaking financial product: Pakistan’s first-ever profit-bearing current account. The new initiative, part of the bank’s broader digital banking platform Mashreq NEO, is designed to attract workers’ remittances, provide Shariah-compliant solutions, and offer competitive financial returns to account holders.
The bank’s launch event highlighted the innovative nature of the product. Shahzad Khokhar, Head of Islamic Banking at Mashreq Bank Pakistan, announced that the remunerative current account would provide a market-first profit rate of up to 5% per annum. In addition, the Shariah-compliant savings account would offer returns of up to 10%, while competitive rates will also be available for conventional banking products. The move is aimed at encouraging Pakistanis to adopt modern digital banking solutions while benefiting from ethical and profitable financial products.
Prime Minister Shehbaz Sharif inaugurated the Mashreq Digital Bank, describing it as a “milestone” for Pakistan’s financial landscape. The launch underscores the country’s growing emphasis on digital finance and its potential to enhance remittance flows, which are a critical component of the national economy.
Headquartered in Dubai, Mashreq Bank aims to serve 10 million Pakistanis within the next five years, positioning itself as one of the largest single foreign direct investors in the country with a total investment of $100 million over recent years. Leveraging its strong presence in the UAE, the bank is facilitating seamless remittances from overseas Pakistanis. CEO Muhammad Hamayun Sajjad noted that Mashreq UAE currently supports nearly 300,000 Pakistani expatriates, offering instant, zero-fee transfers and expedited account opening procedures for non-resident Pakistanis (NRPs).
The significance of remittances to Pakistan’s economy is substantial. In FY 2024–25, remittances reached a record $38 billion, up from $28 billion two years prior. Sajjad highlighted that remittances contribute approximately 10% to the country’s GDP, underscoring their role as a lifeline for economic stability. The bank’s new offerings aim to further channel these inflows into productive and Shariah-compliant financial instruments.
Mashreq Bank has ambitious plans for growth and expansion. SME banking services are expected to launch by mid-2026, followed by consumer lending options by December 2026. Additionally, the bank is exploring the installation of cash-deposit ATMs across Pakistan to enhance convenience and accessibility for customers.
The introduction of profit-bearing current accounts represents a significant evolution in Pakistan’s banking sector, bridging the gap between traditional banking practices and modern, digital, Shariah-compliant financial services. By providing competitive returns and focusing on remittances, Mashreq Bank Pakistan is positioning itself as a pivotal player in shaping the country’s digital financial ecosystem.
Follow the PakBanker Whatsapp Channel for updated across Pakistan’s banking ecosystem.