KARACHI: Senior officials from the State Bank of Pakistan (SBP) and leading financial institutions have emphasized the critical need for collaborative action among regulators, banks, and technology providers to advance Islamic and digital banking transformation in Pakistan. The consensus emerged at the “NextGen Islamic Banking in Pakistan – 2025” forum, organized by TMC Pvt. Ltd. in partnership with Azentio Software, bringing together key voices shaping the future of Pakistan’s banking landscape.
The conference focused on the convergence of Islamic finance principles and digital transformation to build a more inclusive, efficient, and compliant financial system. Participants discussed strategies for accelerating technology adoption, meeting evolving regulatory frameworks, and aligning with the State Bank’s long-term vision for a digitally empowered, Shariah-compliant banking ecosystem.
Dr. Zahid ur Rehman Khokher, Director of the Islamic Finance Policy Department at the State Bank of Pakistan, underscored that collaboration across the financial ecosystem is essential to achieve the central bank’s Vision 2025. “Pakistan’s banking future depends on how well we integrate innovation, compliance, and inclusivity. The State Bank’s Vision 2025 aims to shape a financial ecosystem that is Shariah-compliant, digitally empowered, and accessible to all segments of society. By fostering partnerships between regulators, financial institutions, and technology providers, we can achieve a resilient and future-ready banking sector,” he remarked.
The event featured prominent industry experts and executives from major Islamic banks who shared their experiences and perspectives on transforming conventional models into agile, technology-driven systems that uphold Shariah compliance. They also discussed the challenges and opportunities involved in standardizing processes, building digital infrastructure, and developing regulatory frameworks that encourage innovation while maintaining financial integrity.
Haroon Tabraze, Principal Advisor at the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), highlighted the critical role of harmonized standards and professional training in strengthening Pakistan’s Islamic finance ecosystem. “Consistency in Shariah governance and professional capacity building will ensure Pakistan remains aligned with international best practices, fostering trust and growth across the Islamic banking sector,” he noted.
Adding to the discussion, Rizwan Ata, President and CEO of BankIslami Pakistan Ltd, shared his insights on the strategic hurdles faced by banks during large-scale Islamic banking transitions. Using BankIslami’s transformation journey as a case study, he elaborated on practical steps taken to streamline operations, enhance compliance, and leverage technology for customer-centric solutions.
Meanwhile, Ahmed Ali Siddiqui, Group Head and SEVP of Consumer Finance at Meezan Bank Limited, discussed Meezan Bank’s pioneering role in converting from a conventional model to a fully Islamic framework. He emphasized how digital tools, innovation in product design, and effective change management enabled the bank to scale efficiently while maintaining Shariah authenticity.
The forum concluded with a call to action for all stakeholders—regulators, banks, and fintech partners—to deepen collaboration, invest in emerging technologies, and prioritize inclusivity to ensure sustainable growth of Islamic and digital banking in Pakistan. Experts agreed that building a robust ecosystem will require joint efforts in policy development, digital infrastructure enhancement, and customer education.
As Pakistan’s banking sector continues to evolve, the alignment between technology and Shariah principles is expected to play a defining role in expanding financial access and resilience. The discussions at “NextGen Islamic Banking in Pakistan – 2025” reaffirmed the nation’s potential to emerge as a regional leader in digital and Islamic financial innovation.
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