islamicbanker.com

Pakistan is relatively a late starter in the field of Islamic banking, however, the industry is receiving strong support from the government and the private sector.

Market Size

Six fully compliant Islamic banks, with 13 conventional banks having Islamic windows or branches. The industry has assets of $2bln as of early 2007. There are also 2 takaful operators and several Islamic mutual funds present in Pakistan.

Currently the share of Islamic banking against the total industry stands at 3.2 per cent, as per State Bank of Pakistan data.

Key Developments

Aug. 2008: Pakistan is planning to issue the first local currency Shari'ah compliant Islamic bond. Standard Chartered Bank and Dubai Islamic Bank are advising on the deal.

Feb. 2008: According to Fitch Ratings, the Pakistani banking sector is improving but is still susceptible to political risks.

Jan. 2008: The State Bank of Pakistan focuses on the regulatory framework for Islamic banks by issuing Risk Management Guidelines.

Key Statistics

Population

173 million
- 97% Muslim
- 1.6% Christian
- 1.3% Hindu

Economics

GDP: $150 billion
- GDP per capita: $2,600
- Labour force: 50 million

GDP by sector:
- agricultural (19.6%); industry (26.8%); services (53.7%).

Population below poverty:
- 24%

Unemployment: 7.5%