Pakistan targets interest-free financial system by 2027
Key takeaways
- Add ARY News on Google AAResize ISLAMABAD: The federal government has kicked off work on a roadmap to move Pakistan off interest-based banking after 2027, the Finance Ministry said.
- According to ministry figures, financial sector assets had climbed to Rs79,780 billion by 2025, equal to 68.5 percent of GDP.
- Officials said the shift to an Islamic financial system will be phased rather than abrupt.
Why this matters: local context for readers following news across Pakistan and the region.
Add ARY News on Google AAResize ISLAMABAD: The federal government has kicked off work on a roadmap to move Pakistan off interest-based banking after 2027, the Finance Ministry said. The plan will be implemented jointly by the government, State Bank of Pakistan and the SECP, ARY News reported.
According to ministry figures, financial sector assets had climbed to Rs79,780 billion by 2025, equal to 68.5 percent of GDP. Banks hold most of that at Rs63,231 billion, while non-banking financial institutions account for Rs6,844 billion.
Officials said the shift to an Islamic financial system will be phased rather than abrupt. The ministry has decided to introduce a new framework for sukuk issuance and has already sped up work on short-term sukuk. Federal and provincial laws will also be amended to support Shariah-compliant finance.