Pakistan’s Islamic Banking Assets Grow 30.6% YoY in 1Q 2021 as Demand Increases Despite Pandemic

Pakistan’s Islamic banking industry (IBI)’s assets climbed 30.6% year-on-year (YoY) to PKR 4.389 trillion in the first quarter of 2021 (1Q 2021), up from PKR 3.360 trillion a year earlier, according to the latest Islamic Banking Bulletin issued by the State Bank of Pakistan (SBP).

Why it Matters?

Despite the obstacles experienced by the sector due to COVID-19, demand for Shariah-compliant finance has been on the rise. The Government of Pakistan’s increased issuance of Sukuk and the SBP’s campaign for financial inclusion have also contributed to the strong growth of Islamic banking in the country. The SBP is amongst the select regulators to have announced a comprehensive legal, regulatory and Shariah governance framework for the...