Pakistan reports 30% growth in Islamic banking assets

Pakistan has recorded 30% growth in Islamic banking assets during the 2020 fiscal year.

According to a report released by the State Bank of Pakistan on Wednesday, the overall deposits of the Islamic banking industry have also shown a growth of 27.8%, 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 the fact that the industry was also faced with the Covid19 pandemic challenges during 2020," the report added.

The assets of Islamic banking industry increased to 4,269 billion Pakistani rupees ($27.50 billion), while deposits reached 3,389 billion rupees ($21.3 billion) by the end of December 2020.

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

"In continuation of its on-going strategy, 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.