­Mashreq Pakistan gets in-principle approval to launch Islamic banking operations

KARACHI: The State Bank of Pakistan has granted Mashreq Pakistan in-principle approval to commence its Islamic banking operations in the country, a statement said on Wednesday.

Mashreq Pakistan is a part of Mashreq which is the leading financial institution in the Middle East and North Africa.“This a pivotal moment that reaffirms the bank’s commitment to providing an ethical, innovative and robust banking system that aligns with the principles of Sharia, thereby contributing to the nation’s financial landscape and becoming a catalyst for its future growth,” the bank said. “Mashreq is actively progressing towards acquiring a restricted license from the State Bank of Pakistan to initiate pilot digital retail banking operations in Pakistan,” it added.

To mark this momentous occasion, Mashreq Pakistan organized a celebratory event with its leadership team and employees. The event also celebrated Mashreq Al Islami’s recent global recognition as the World’s Best Islamic Digital Bank by the Euromoney Islamic Finance Awards 2024, for the second year in a row that has further solidified Mashreq’s position as a leader in Islamic banking innovation.

On the occasion, Group Head of Retail Banking at Mashreq Fernando Morillo said, “Our goal is to provide enriching experiences that go beyond traditional banking services, ensuring every interaction with our customers is meaningful and rewarding.”

“We are not just adapting to technological advancements, we are driving them. Our advanced digital capabilities have set a benchmark in the global Islamic banking industry, and we are excited to bring the same level of excellence to our operations in Pakistan.”

CEO of Mashreq Pakistan Muhammad Humayun Sajjad said, “Receiving the IPA [in-principle approval] for Islamic banking operations is a pivotal step towards realizing our vision of offering innovative, customer-centric banking solutions that cater to the diverse needs of the Pakistani market. We are poised to be an Islamic-first digital bank in the country, aspiring to deliver the best Islamic banking solutions to not just meet Pakistani’s expectations, but to exceed them.”

Director of the Islamic Finance Policy Department at the State Bank of Pakistan GM Abbasi remarked, “The SBP has worked proactively over the years to promote and develop Islamic Banking in Pakistan through the introduction of a comprehensive, legal, regulatory and Sharia compliance framework; different training and building capacity initiatives; and creating awareness drives for various stakeholders on Islamic banking and finance. These efforts are part of the SBP’s strategy to foster a more inclusive financial environment in Pakistan, which will include digital banks like Mashreq.”