SBP Governor Advocates for Sukuk Market Development

At the National Islamic Economic Forum 2025 held in Karachi, Jameel Ahmad, the Governor of the State Bank of Pakistan (SBP), addressed the assembly, emphasizing the collaborative efforts between the government and SBP to enhance Pakistan’s Sukuk market. He also encouraged relevant parties to resolve any obstacles in issuing these bonds.

Speaking on Tuesday, he stated, “We are dedicated to making the Sukuk structure simpler and streamlining the issuance of new Sukuks.” He also noted the joint initiative by the central bank and the government to shift public debt towards Sukuk, which are bonds compliant with Shariah law.

He commented, “I believe we should collectively tackle the fundamental problems so that we can issue more Sukuks and offer Shariah-compliant products to investors.”

The central bank governor also shed light on the nation’s macroeconomic indicators, pointing out that the SBP’s foreign exchange reserves had seen a rise from $3 billion in 2022 to over $11 billion. He clarified that this increase “has been achieved without acquiring any loans.”

Macroeconomic Indicators Highlighted

The central bank chief informed foreign investors that external debt had decreased by $1–1.5 billion during the same time frame, bringing the total debt below $100 billion. He added, “This positive development will have a clear, beneficial impact on the economy in the near future.”

Ahmad mentioned that remittances from overseas workers, which amounted to $30.3 billion the previous year, are projected to reach almost $38 billion in the current fiscal year.

“This approximate $8 billion increase reflects the dedication and efforts of our overseas workers and the freelancing community.”

Turning his attention to Pakistan’s Islamic banking sector, the SBP Governor noted that the total assets of Islamic banking reached Rs11.5 trillion by March 2025, representing 21.1% of the total assets in the banking sector.

He also stated that total deposits in Islamic banking in Pakistan are currently at Rs8.8 trillion.

Ahmad stated, “While there is still much to accomplish, we have already seen significant progress. The portion of Islamic banking is steadily increasing.”

He urged the leaders of Islamic banks to focus on providing financial services to key sectors, such as SMEs, agriculture, housing, and microenterprises.

He further commented that Islamic Banking Institutions (IBIs) should implement several strategies to expand their reach.

Digitization Initiatives

The SBP Governor also mentioned several ongoing large-scale projects aimed at digitizing the economy, including RAAST, a micro payment gateway.

“Through RAAST, individuals can transfer funds from anywhere in the country within six seconds, which has accelerated our digitization process.”

Ahmad shared that the total number of digital transactions had grown from 5.5 billion to 7.5 billion in 2024, marking an increase of 38%.

He concluded, “Currently, 87% of retail transactions are conducted digitally.”