Samba Bank, HBL Microfinance among firms cleared for Islamic Banking Operations

KARACHI – State Bank of Pakistan granted in-principle approval to five institutions to start Islamic banking operations, marking another step in the steady expansion of Shariah-compliant finance in the country amid rising demand and continued regulatory support. The central bank gave nod to five more financial institutions Samba Bank Limited, HBL Microfinance Bank, ASA Microfinance Bank, Sindh Microfinance Bank, and Pak Libya Holding Company to launch Islamic banking operations, signaling a rapid expansion of Shariah-compliant finance across the country. According to the central bank, it is actively engaged with these institutions, providing regulatory guidance and technical support to ensure their Islamic banking systems are properly structured, compliant, and ready for smooth implementation. This latest wave of approvals comes shortly after another round of permissions earlier in 2025, when Mashreq Bank, along with Mobilink Microfinance Bank and LOLC Microfinance Bank, were also allowed to begin offering Islamic banking service. Central bank noted clear and rising demand for Islamic banking products across commercial banks, microfinance institutions, and development finance entities. This surge is largely being driven by strong public interest in Shariah-compliant financial solutions. Financial Stability Review further emphasized that this expansion reflects both the growing footprint of Islamic finance in Pakistan and the increasing responsiveness of financial institutions to evolving customer preferences. As of 2026, Pakistan’s Islamic banking ecosystem comprises 22 institutions in total, including six fully dedicated Islamic banks, while 16 conventional banks continue to operate Islamic banking “windows” alongside their standard banking services, creating a dual but rapidly expanding financial system. Qaumi Bachat Bank monthly profit for Regular Income Certificates [May 2026 Update]