Pakistan’s Islamic finance enters a new phase

中文标题

巴基斯坦伊斯兰金融进入新阶段

Standard Chartered08/17/2026updated 10/17/2026

Unknown economy

Citable research brief

Core conclusion · Tlines extraction

Standard Chartered reports that Pakistan's Islamic finance sector has reached critical mass, with Islamic banking now accounting for 28.5% of deposits and 24% of assets. The next phase will be defined by regional connectivity and Islamic liquidity deployment rather than growth alone, as evidenced by hybrid sukuk structures and cross-border client activity.

Institution: Standard Chartered
Published: 08/17/2026
Research topic: Global Islamic finance growth · Islamic finance · Strategic shift in Islamic finance
Time horizon: 2024-2028 · medium-term · short-term · long-term

Key arguments

Islamic banking in Pakistan has reached critical mass, with 28.5% of banking deposits and 24% of banking assets, and over 20 banks offering Islamic finance.
Competitive advantage is shifting from market share to connectivity, as institutions compete on deploying liquidity and supporting cross-border client activity.
Regional connectivity is expanding as Pakistani businesses establish operations in the UAE, with interest in Saudi Arabia in early stages.
Pakistan's sukuk market is evolving with hybrid structures and shorter-tenor auctions, improving Islamic liquidity deployment.
Sustainable growth depends on ecosystem development involving regulators, financial institutions, universities, and scholars.
Global Islamic finance assets are projected to grow from USD 5.5 trillion in 2024 to USD 7.5 trillion by 2028.

Key numbers

Islamic banking share of Pakistan deposits: 28.5%
Islamic banking share of Pakistan assets: 24%
Global Islamic finance assets 2024: USD 5.5 trillion
Global Islamic finance assets 2028: USD 7.5 trillion
Banks offering Islamic finance in Pakistan: 20+

Main risks

The growth of Islamic finance may be uneven across markets, and Pakistan's experience may not be replicated elsewhere.
Liquidity deployment challenges may persist if market infrastructure and instruments do not develop sufficiently.
Regional connectivity could be limited by geopolitical or regulatory barriers.
Digitalisation, a third structural force, is not fully addressed in this article, potentially limiting future growth.

Corresponding source evidence

Standard Chartered estimates global Islamic finance assets will grow from USD 5.5 trillion in 2024 to USD 7.5 trillion by 2028, reflecting growing demand for Shariah-compliant financing, investment and liquidity solutions across multiple markets. · 2024-2028
The next phase looks different. Reflecting on the industry’s evolution, in a recent panel discussion, Azhar Aslam – who is Head of Islamic Banking, Standard Chartered Pakistan – observed that two decades ago, many large corporates questioned whether Islamic banking possessed sufficient scale to support complex financing requirements. Today, those conversations have largely given way to discussions about supporting larger funding programmes, increasingly sophisticated financing structures and international business activity. · medium-term
During the discussion, Aslam highlighted the growing number of Pakistani businesses establishing operations in markets such as the UAE, with interest in Saudi Arabia still in early stages and, over time, interest expected to grow in other regional markets. · medium-term

Conditions / invalidation

Once markets reach critical mass
If shorter-tenor government paper becomes available to banks
As the market matures
Once Islamic finance reaches critical mass

Context: the conclusion is Tlines' automated extraction, not the institution's wording. Quoted evidence is publisher wording. Scope and date must travel with the conclusion.