Senior officials from State Bank of Pakistan (SBP) and leading commercial banks have stressed the importance of collaboration between regulators, financial institutions, and technology partners to drive Islamic and digital banking transformation in Pakistan. The remarks were made during “NextGen Islamic Banking in Pakistan – 2025,” a forum organized by TMC Pvt. Ltd. and Azentio Software in Karachi. The event aimed to explore strategies for modernizing banking operations, strengthening Shariah compliance, and implementing digital solutions that align with the evolving regulatory environment.
Dr. Zahid ur Rehman Khokher, Director of Islamic Finance Policy Department at SBP, highlighted that the future of Pakistan’s banking sector depends on integrating innovation, regulatory compliance, and financial inclusivity. He explained that SBP’s Vision 2025 focuses on developing a resilient, Shariah-compliant, and digitally empowered financial ecosystem accessible to all segments of society. Industry leaders at the forum emphasized that partnerships between regulators, banks, and technology providers are essential to ensure a sustainable and future-ready banking environment.
The event featured discussions on operational success stories and strategies for large-scale Shariah-compliant banking implementation. Haroon Tabraze, Principal Advisor at Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), spoke about the need for standardization and capacity building to align Pakistan’s banking sector with international Shariah practices. Rizwan Ata, President and CEO of BankIslami Pakistan Ltd, shared insights from the bank’s own experiences in deploying Shariah-compliant models, while Ahmed Ali Siddiqui, Group Head at Meezan Bank Limited, discussed the conversion of conventional banking operations to Islamic banking. Speakers underscored that collaboration, rather than competition, is key to enabling sustainable transformation across the sector.
Panel discussions during the event, including one moderated by Prof. Dr. Mufti Hassan Usmani, Shariah Board Member at Faysal Bank, explored balancing Shariah compliance with growth and digital innovation. Participants included senior Shariah board members from BankIslami Pakistan Ltd, Al Baraka Bank Pakistan Ltd, and Dubai Islamic Bank Pakistan Limited, along with experts from Al Hilal Shariah Advisors. The panels emphasized that Shariah principles and digital tools must advance together, highlighting compliance as an enabler of growth and innovation. The forum concluded with a strategic consensus on harmonizing innovation, regulatory standards, and technological adoption to ensure a modern and sustainable Islamic banking landscape in Pakistan.
The partnership between TMC and Azentio is set to further support financial institutions in Pakistan through advanced Islamic core banking platforms, AML and compliance solutions, digital lending capabilities, and transformative technologies. By leveraging Azentio’s international expertise and TMC’s local market knowledge, the collaboration aims to accelerate the adoption of Shariah-compliant digital banking, enhancing operational efficiency, compliance, and overall financial sector modernization across the country.
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