Raqami Islamic Digital Bank Limited has reached a significant milestone in Pakistan’s fintech landscape after receiving a restricted banking license from the State Bank of Pakistan (SBP) to commence pilot operations as a Digital Retail Bank. This approval, granted under the State Bank’s Licensing and Regulatory Framework for Digital Banks, positions Raqami as the country’s first fully Shariah-compliant digital retail bank, marking a transformative step toward modernizing Pakistan’s banking sector with innovation and ethical finance.
The Licensing and Regulatory Framework for Digital Banks was introduced by the SBP to foster innovation, promote financial inclusion, and encourage secure, responsible digital banking practices. It enables a phased licensing process where banks initially operate under pilot status before launching full commercial operations. Raqami’s pilot license underscores the bank’s readiness to deploy its digital infrastructure, compliance mechanisms, and Shariah governance in a controlled and secure environment.
In securing the license, Raqami demonstrated robust operational capabilities, including state-of-the-art technology, comprehensive information security systems, and effective risk management frameworks. Importantly, it also adhered strictly to Shariah principles, ensuring all products and services align with Islamic finance tenets. The bank’s pilot phase will validate its end-to-end systems and customer experiences, setting a precedent for digital Islamic banking in Pakistan.
Abdullah Al-Mutairi, Chairman of Raqami’s Board of Directors, highlighted the potential for digital banking to revolutionize financial services in Pakistan. He remarked that global fintech growth is propelled by shifting consumer preferences toward digital solutions, and Raqami’s mission reflects this trend, combining innovation with Shariah compliance to expand financial inclusion. He affirmed the board’s dedication to integrity and service excellence and expressed gratitude toward the SBP for its trust and support throughout the licensing process.
Chief Executive Officer Umair Aijaz emphasized that the pilot license launch is more than a regulatory achievement—it is a landmark moment signaling a new era in Pakistan’s banking sector. Built from the ground up as a digital-first Islamic retail bank, Raqami aims to offer transparent, convenient, and trustworthy financial experiences tailored to Pakistani customers’ needs. “We are architecting the future of banking in Pakistan, driven by innovation and guided by Islamic principles,” he stated.
Umair further explained the bank’s mission to provide accessible, ethical financial solutions that simplify banking and remove barriers to access. The bank’s product suite will be designed around customer needs, making digital banking as seamless as using a smartphone, as principled as one’s values, and as accessible as individual aspirations. He described Raqami as a movement towards digital empowerment and financial dignity for all Pakistanis.
Shariah Board Chairman Dr. Mufti Muhammad Imran Ashraf Usmani affirmed the bank’s strict adherence to Islamic finance ethics. The bank’s offerings will be interest-free, asset-backed, fair, and ethical, with ongoing Shariah oversight to ensure compliance. Raqami’s entry into the market provides Pakistanis with access to a fully riba-free digital financial ecosystem, meeting growing demand for Shariah-compliant services.
Looking ahead, Raqami plans to deepen its investment in a scalable technology platform powered by Open APIs, Banking-as-a-Service (BaaS), and intelligent automation. This infrastructure will facilitate seamless integration with fintechs, telecom operators, and other ecosystem partners to deliver real-time, personalized, and secure Shariah-compliant financial services. Over the next five years, Raqami aims to lead a banking transformation in Pakistan based on inclusiveness, innovation, and Shariah excellence.
Raqami’s strong institutional backing includes Pakistan Kuwait Investment Company (Private) Limited—a joint venture between the governments of Pakistan and Kuwait—and Enertech Holding Company KSC, a subsidiary of Kuwait’s sovereign wealth fund. This partnership underscores a long-term commitment to supporting Pakistan’s digital economy and extending financial services to unserved and underserved populations, aligned with SBP’s vision for a modern, inclusive financial ecosystem.
This historic milestone for Pakistan’s banking sector not only marks the rise of digital Islamic finance but also sets a new benchmark for how technology and ethics can combine to reshape financial services in the country.
