State Bank of Pakistan Governor Jameel Ahmad has called for financial institutions to ensure human oversight in sensitive areas of banking as artificial intelligence becomes more widely deployed across the sector. Speaking at the sixth AlBaraka Forum Regional Conference – Pakistan 2026 titled “Islamic Economy in the Digital Age – Innovation Within The Framework of Compliance,” Ahmad stressed that while AI can enhance efficiency, strengthen risk management, and reduce costs, human judgment remains essential, particularly in loan approvals and customer due diligence. He noted that such oversight is critical to maintaining fairness, transparency, and compliance in decision-making processes.
Highlighting the rapid adoption of digital financial services in Pakistan, Ahmad said that mobile banking apps, branchless banking, wallets, and Electronic Money Institutions have driven 78 percent of total digital retail transactions. He pointed out that more than 70 percent of people globally use at least one digital financial service, while over 80 percent are willing to shift to digital banking, signaling a major transformation in consumer behavior and expectations. Ahmad underlined that these developments, supported by SBP policy interventions and investments in digital infrastructure, have contributed to significant progress in the national payment ecosystem.
Linking these trends with Shariah-compliant banking, Ahmad explained that Islamic finance in the digital age must maintain a strong connection with the real economy while upholding principles of fairness, shared prosperity, and transparency. He emphasized that Islamic finance is not merely conventional banking with modified parameters but a deliberate effort to create an inclusive financial ecosystem serving the wider community. Digital adoption, he added, should support socioeconomic objectives such as lowering costs, reducing geographic barriers, and improving access to finance for small businesses, farmers, and women entrepreneurs, segments historically underserved by conventional financial systems.
Several initiatives in Pakistan have contributed to expanding access to formal financial services, including Raast, Assan Mobile Account, Roshan Digital Account, digital onboarding frameworks, and the licensing of digital banks. Since SBP granted principle approval to five digital banks in 2022, one has already started Islamic operations while another is in the pilot phase, marking a new chapter in Shariah-compliant digital finance in the country. Ahmad cautioned that technology may simply replicate conventional models if not properly aligned with Shariah principles and stressed the need for robust data protection and regulatory compliance frameworks to mitigate such risks.
AlBaraka Forum Secretary General Yousef Hassan Khalawi emphasized that Islamic finance and conventional banking are entering the digital era simultaneously, with governance and adherence to values being key differentiators. He noted that sustainable digital Islamic finance requires collaboration among scholars, regulators, and industry leaders to ensure alignment with Shariah objectives and long-term economic stability. AlBaraka Bank Pakistan CEO Muhammad Atif Hanif said the sector’s integration of digital solutions with Islamic finance principles is enabling broader societal engagement through a more inclusive and trusted financial system, strengthening both accessibility and operational resilience.
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