As Pakistan increasingly adopts Islamic banking, Bahrain-based Al Baraka Bank is planning to expand its presence in the country. The bank’s CEO in Pakistan, Muhammad Atif Hanif, announced in a recent interview that they are set to open 15 new branches across Pakistan as an initial phase of their expansion.
“This is just the first year, and we anticipate much stronger growth in the coming years,” Hanif stated.
Islamic banking, which adheres to Sharia law, eschews traditional interest mechanisms in favor of profit-sharing models as returns on investments.
The move towards Islamic banking gained momentum after Pakistan’s Federal Shariat Court mandated the transition from conventional interest-based banking to an “equitable, asset-based, risk-sharing, and interest-free” banking system by December 2027.
Currently, Islamic banking holds a 23% share of the total banking deposits in Pakistan, as reported by the State Bank of Pakistan.
In line with a five-year strategic plan, Al Baraka is forging connections between Pakistan and its established networks in non-traditional markets across the Persian Gulf and Africa.
“By introducing new markets, we’re not just expanding business but also creating opportunities for engagement beyond our existing client base,” Hanif explained.
