Pakistan sees 30% growth in Islamic banking assets

Increase in assets, deposits highest since 2015 and 2012 respectively, says SBP

KARACHI:

Pakistan has recorded a 30 per cent growth in Islamic banking assets during the 2020 fiscal year.

According to a report released by the State Bank of Pakistan (SBP) on Wednesday, the overall deposits of the Islamic banking industry have also shown a growth of 27.8 per cent, in 2020.


This, the report said, is the highest increase in assets in a year since 2012 and in deposits since 2015.

Over the last five years, both assets and deposits of the Islamic banking industry have more than doubled.

"This growth in assets and deposits of the Islamic banking industry is encouraging, particularly due to the fact that the industry was also faced with the Covid-19 pandemic challenges during 2020," the report added.

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The assets of the Islamic banking industry increased to Rs4,269 billion ($27.50 billion), while deposits reached Rs3,389 billion ($21.3 billion) by the end of December 2020.

Financing of the Islamic banking industry has also grown by 16 per cent during 2020.

"In continuation of its on-going strategy, the State Bank remains committed towards promotion of Islamic banking industry on sound and sustainable basis in the country by providing a level playing field," the report concluded.

Currently, apart from five full-fledged Islamic banks, over a dozen conventional banks are offering Islamic banking services in Pakistan.