Top 10 Islamic Banks in Pakistan

Islamic banking has grown into one of the fastest-expanding segments of Pakistan's financial sector, driven by strong consumer demand for Shariah-compliant products. Here are ten of the country's leading Islamic banking institutions, spanning full-fledged Islamic banks and major Islamic banking divisions of conventional banks.

1. Meezan Bank Limited

Meezan Bank is Pakistan's largest and oldest full-fledged Islamic bank, founded in 1997 and now operating over 1,100 branches nationwide. It holds the position of the second-largest bank in Pakistan by market capitalization, trailing only a handful of conventional giants.

Owned by Noor Financial Investment, Pakistan Kuwait Investment Company, and the Islamic Development Bank, Meezan reported total assets of nearly Rs4.81 trillion and net income of Rs89 billion in 2025, making it by far the dominant player in the country's Islamic banking space.

2. BankIslami Pakistan Limited

BankIslami was among the very first banks to receive a dedicated Islamic banking license from the State Bank of Pakistan in 2005, commencing operations in April 2006. It now operates over 550 branches and has consistently ranked among the top three Islamic banks in Pakistan by assets and deposits.

Majority owned by JS Bank, BankIslami reported total assets of over Rs771 billion in 2025. Its acquisition of KASB Bank in 2015 significantly expanded its branch network and customer base across the country.

3. Dubai Islamic Bank Pakistan

Dubai Islamic Bank Pakistan operates as a subsidiary of the UAE-based Dubai Islamic Bank, one of the world's largest and oldest Islamic banking institutions, established in 1975. Its Pakistani operations have grown steadily, offering a full suite of Shariah-compliant retail, corporate, and investment banking products.

The bank benefits from its parent's global expertise in Islamic finance, helping it introduce internationally tested Shariah-compliant products into the Pakistani market while maintaining a growing branch network across major cities.

4. Al Baraka Bank Pakistan Limited

Al Baraka Bank Pakistan traces its roots back to 1991 and became a subsidiary of the Bahrain-based Al Baraka Banking Group following its 2010 merger with Emirates Global Islamic Bank Pakistan, marking the first such merger in Pakistan's Islamic banking sector.

Operating around 190 branches, Al Baraka reported total assets of over Rs255 billion, with a consistent focus on retail, corporate, and consumer Islamic banking products backed by its parent group's regional presence across multiple countries.

5. Faysal Bank Limited

Faysal Bank made history by becoming Pakistan's first large conventional bank to fully convert its entire operations to Islamic banking, completing this transition in January 2023. This move significantly expanded the overall size and reach of Pakistan's Islamic banking sector overnight.

With its extensive pre-existing branch network now operating entirely on Shariah-compliant principles, Faysal Bank has emerged as one of the largest Islamic banking players in the country, combining established infrastructure with a fully Islamic product suite.

6. MCB Islamic Bank Limited

MCB Islamic Bank operates as a dedicated Islamic banking subsidiary of MCB Bank, one of Pakistan's oldest and most established conventional banks. It was launched to allow MCB to compete directly in the growing Islamic banking segment through a separately licensed entity.

The bank offers a full range of Shariah-compliant deposit, financing, and investment products, leveraging MCB's broader institutional strength, technology infrastructure, and customer trust built over decades of conventional banking operations.

7. Bank Alfalah Islamic Banking

Bank Alfalah operates one of Pakistan's largest Islamic banking windows, offering Shariah-compliant products alongside its conventional operations through dedicated Islamic branches across the country. This dual-banking model allows it to serve both conventional and Islamic banking customers under one institutional umbrella.

Its Islamic banking division has grown substantially in recent years, supported by Bank Alfalah's strong deposit base and extensive branch network, positioning it as a significant player in Pakistan's Islamic finance landscape.

8. UBL Ameen (United Bank Limited Islamic Banking)

UBL Ameen represents United Bank Limited's dedicated Islamic banking brand, offering Shariah-compliant retail and corporate banking products through specialized branches integrated within UBL's extensive nationwide network of over 1,900 branches.

By operating under one of Pakistan's largest and most internationally connected banks, UBL Ameen benefits from significant institutional backing, technology infrastructure, and a broad customer base transitioning toward Islamic banking products.

9. HBL Islamic Banking

Habib Bank Limited runs a dedicated Islamic banking division offering Shariah-compliant products through specialized branches, backed by HBL's position as one of Pakistan's largest and most internationally active banks.

HBL's Islamic banking arm benefits from the parent bank's extensive domestic and international network, including its unique presence in markets like China, giving it a distinctive edge in cross-border Islamic finance and trade-related Shariah-compliant products.

10. Bank of Khyber Islamic Banking

The Bank of Khyber, majority owned by the Government of Khyber Pakhtunkhwa, operates a significant Islamic banking division alongside its conventional operations, reflecting the provincial government's emphasis on expanding Shariah-compliant financial services.

Its Islamic banking arm has grown steadily, particularly within Khyber Pakhtunkhwa and surrounding regions, supporting the bank's broader mandate of financial inclusion while catering to strong regional demand for Islamic banking products.