The State Bank of Pakistan has announced on Monday the third five-year strategic plan for the Islamic banking industry to expand the share of Islamic banks’ assets and deposits to 30 percent in the overall banking industry.
The State Bank of Pakistan’s five-year plan includes around 35pc share of Islamic banks in the branch network of the overall banking industry, 10pc share of small and medium enterprises (SMEs), and 8pc share in agriculture financing respectively, in private sector financing. Currently, the Islamic banking industry has acquired a market share of 17pc and 18.3pc in assets and deposits, respectively, by the end of December 2020.
The SBP said in an announcement, “the SBP aims at making Islamic banking one-third of the overall banking industry by 2025,”. Due to its broad-based economic growth, Islamic banking has remained a top priority area for the SBP.