Nearly 42 percent of the Pakistani banking branch network now consists of Islamic banking branches, reflecting a strong shift towards shariah-compliant financial services.
According to the State Bank of Pakistan, the country had 7,562 Islamic banking branches and 2,931 Islamic banking windows by the end of 2025, operated by full-fledged Islamic banks and Islamic banking divisions of conventional banks.
A year earlier, Islamic banking accounted for 31.5 percent of the industry’s branch network, with 5,854 branches and 2,253 windows.
The expansion aligns with the government’s plan to convert the interest-based banking system into a Sharia-compliant system by 2028, following directives from the Federal Shariat Court.
Currently, Pakistan has seven full fledged Islamic banks and 15 conventional banks offering Islamic banking services.
Among major institutions, United Bank Limited operates 752 Islamic branches and 596 Islamic banking windows, while Habib Bank Limited has 608 branches and 506 windows. Meezan Bank runs 1,105 branches, Faysal Bank operates 898 branches, and National Bank of Pakistan has 312 Islamic branches and 350 windows.
Industry officials expect further growth in 2026 as conventional banks accelerate the conversion of interest based operations, though the sector continues to face a shortage of skilled professionals required to support the expanding Islamic banking ecosystem.
