The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the State Bank of Pakistan (SBP) Banking Services Corporation jointly organized an important awareness session on Islamic banking in Lahore, drawing extensive participation from senior SBP officials, chambers of commerce representatives, trade associations, and members of the business community.
Addressing the session, Zaki Ejaz, Vice President of FPCCI, highlighted that Pakistan will implement a fully Shariah-compliant Islamic banking system from January 1, 2028, gradually phasing out conventional banking. He emphasized that this transformation will have significant impacts on industry, trade, and business operations, making timely guidance and awareness for the business community essential.
Ejaz also commended the SBP for its monetary policy interventions over recent years. He noted that the interest rate, which had peaked at 22 percent in June 2023, had been gradually reduced to 11 percent in May 2025 and further lowered to 10.5 percent on December 15, 2025. He described this reduction as a commendable achievement that has positively influenced business activities across the country.
Sarfraz Ahmad Nadeem, Senior Deputy Chief Manager of SBP Banking Services Corporation Lahore, observed that Pakistan had faced severe economic challenges in the past, including the threat of default. However, he highlighted that the country has now stabilized, with exports reaching record levels. Nadeem stressed the importance of frequent consultative sessions, noting that concerns surrounding Islamic banking are diminishing as awareness increases.
Mufti Syed Sabir Hussain, Resident Shariah Board Member of MCB Bank, outlined the rapid progress of Islamic banking in Pakistan. He mentioned that currently six banks across the country operate entirely on Islamic principles. Hussain emphasized that if all stakeholders remain aligned, Pakistan could achieve an interest-free economy by 2028. He further noted that conventional banking often misuses public funds, whereas Islamic banking offers a complete economic system grounded in Shariah principles.
The session served as a platform to inform the business community about the practical implications of transitioning to a fully Islamic banking system. Discussions included compliance requirements, operational adjustments, and strategic planning for businesses to adapt to an interest-free financial environment.
Participants highlighted the importance of collaboration among regulators, financial institutions, and the private sector to ensure a smooth transition. The awareness initiative is part of a broader effort by the SBP and FPCCI to promote financial literacy and prepare stakeholders for the structural shift toward Shariah-compliant financial services in the coming years.
This awareness drive marks a significant step in Pakistan’s journey toward a fully Islamic financial system, aiming to strengthen economic stability, promote ethical financial practices, and align the banking sector with Shariah principles by 2028.
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