5-year plan for Islamic banking industry launched

KARACHI: The State Bank of Pakistan on Monday announced the third five-year strategic plan for Islamic banking industry, with the aim of expanding the share of Islamic banks’ assets and deposits to 30 per cent in overall banking industry.

The five-year plan (2021-25) envisages 35pc share of Islamic banks in the branch network of overall banking industry, 10pc share of small and medium enterprises (SMEs) and 8pc share in agriculture financing respectively, in private sector financing. Currently, the Islamic banking industry has acquired a market share of 17pc and 18.3pc in assets and deposits, respectively, by the end of December 2020.

“The SBP aims at making Islamic banking one third of the overall banking industry by 2025,” the SBP announcement said. Keeping in view the potential towards ensuring broad-based economic growth and development, Islamic banking has remained a top priority area for the SBP.

The SBP said the Islamic banking industry has widened its footprint in banking system of the country. Currently, 22 Islamic banking institutions (five full-fledged Islamic banks and 17 conventional banks having standalone Islamic banking branches) are offering Sharia-compliant products and services through a network of 3,456 branches and 1,638 Islamic banking windows (dedicated counters at conventional branches) spread across 124 districts of the country.