Islamic Financing Reaches 25% of Pakistan’s Banking Sector

State Bank of Pakistan Governor Jameel Ahmed said Islamic financing has reached 25% of the country’s banking sector, as speakers at an event in Islamabad highlighted the growth of the Sukuk market, with total issuance crossing Rs10 trillion.

State Bank Governor’s Remarks

Governor Ahmed called for a sustainable banking sector and more innovation in the Sukuk market. He said more than Rs2 trillion in domestic Sukuk was issued in 2025, and that the central bank is coordinating with the Finance Ministry and banks on sovereign Sukuk.

Interest-Free Economy Goal

Mufti Taqi Usmani, chairman of the Shariah Board at Meezan Bank, said the Constitution calls for an interest-free economy, with 2029 as the target. He credited the State Bank’s efforts with helping Sukuk issuance reach Rs10 trillion. He added that Islamic financial institutions have helped develop asset-based Sukuk and proposals for more equitable wealth distribution.

Finance Minister’s View

Finance Minister Muhammad Aurangzeb said Sukuk issuance rose 30% over the previous year and that Pakistan received foreign investment in Sukuk last month. He said Sukuk has helped extend debt maturities and reduce financing costs, and called for closer public-private cooperation.