SBP governor says there’s steady progress towards Riba-free banking

KARACHI: Jameel Ahmad, Governor State Bank of Pakistan (SBP), on Wednesday said that Pakistan is making steady progress towards a Riba-free financial system, with the government having already unveiled the post-2027 roadmap for a fully Shariah-compliant banking framework.

Addressing the “4th National Islamic Economic Forum Conference” organised by Saylani Welfare International Trust through a virtual link, he reaffirmed the commitment to transforming Pakistan’s banking system into a fully Shariah-compliant framework, saying the SBP is continuously strengthening its regulatory framework and working closely with the government to achieve the objective of a Riba-free financial system.

He said that the SBP has been striving since its inception to align the country’s banking system with Islamic principles and is now adapting its regulatory framework to facilitate the transition. “The government has already outlined its post-2027 strategy for the banking sector, while the SBP remains fully committed to implementing the roadmap for Islamic banking”, he added.

He said capacity building of bankers and Shariah scholars is essential for the successful expansion of Islamic finance in the country. The SBP is conducting a number of awareness and training programmes in collaboration with universities and religious seminaries to promote Islamic banking across the country.

The governor SBP invited participants to compile practical recommendations, assuring them that the SBP would work with all stakeholders to address challenges facing the sector. “This is an opportunity for everyone to contribute towards the promotion of Islamic banking,” he said.

Highlighting recent developments, Jameel Ahmad said hybrid Sukuk instruments were launched on April 16, 2026, while the SBP has also approved a short-term Sukuk framework to provide Islamic banks with an alternative to Treasury Bills.

Copyright Business Recorder, 2026