State Bank of Pakistan Issues Instructions to Enhance Islamic Banking Operations

The State Bank of Pakistan (SBP) has issued revised instructions for banks in Pakistan to enhance their scope of operations of Islamic Banking Windows (IBWs) in order to increase the share of Islamic banking in the country.

According to a statement released by SBP, IBWs are now able to offer all types of Shariah-compliant financing products to their customers, which include corporates, small and medium enterprises, agriculture, housing and consumers. However, this provision is only valid if the respective IBW branch converts into a complete Islamic banking branch within three years. Currently, Islamic banking products and services are provided by Islamic banks, Islamic banking subsidiaries and Islamic banking branches o...