By Zubair Qureshi

Copyright pakobserver

Launch of Shariah-compliant digital banking services termed beginning of a new era in Pakistan

The first international deployment of Mashreq’s digital banking platform outside the UAE, has launched a full-service digital retail bank in Pakistan, called Mashreq Bank Pakistan.

The new entity will operate as a Shariah-compliant digital bank, providing mobile-first services for personal customers and small and medium-sized enterprises.

In order to commemorate the commercial launch of Mashreq

Pakistan, the Pakistan Banks Association (PBA), on behalf of the banking sector, hosted a reception in the federal capital. The event saw a galaxy of banking luminaries, members of the Parliament and the Diplomatic Corps, investors, businessmen and of course high officials of the Ministry of Finance & the State Bank of Pakistan (SBP). The reception was hosted in honour of Chairman of Mashreq, Abdul Aziz Al Ghurair, Group Chief Executive Officer (CEO), Ahmed Abdelaal and Mashreq’s global leadership team. On behalf of the banking sector, Chairman PBA, Mr.ZafarMasud, and while representing the foreign investors, President of Overseas Investors Chamber of Commerce and Industry (OICCI), Mr Yousaf Hussain welcomed the distinguished dignitaries.

Keynote speakers on the occasion included Minister of State for Finance & Revenue, Bilal Azhar Kayani and Governor of SBP, Mr Jameel Ahmad.

Eminent leaders from the government, financial sector and the business community were also present in attendance. US Charge d’Affaires Natalie A Baker also attended the reception on the special invitation of the PBA.

While welcoming Mashreq Bank in Pakistan, Bilal Azhar Kayani remarked the bank was launching its commercial services in Pakistan at an appropriate time. He highlighted Prime Minister Shehbaz Sharif’s vision for financial modernization and informed the gathering that the government was committed to promoting digital financial systems and adopting modern governance practices. He linked the progress of a cashless society to such initiatives as undertaken by Mashreq.

In remittances, cashless transactions and Shariah-compliant services, Mashreq’s leadership role is acknowledged worldwide and I am sure in Pakistan too, it will keep all those standard intact, said Bilal Kayani.

He underscored the pivotal role of the banking industry in driving Pakistan’s economy. In 2024, banks paid Rs. 856 billion in income tax and over Rs. 1.5 trillion in total taxes. In the first half of 2025 alone, the sector recorded a fiscal contribution of 30pc higher compared to the same period in 2024, reaffirming its position as a cornerstone of national revenue generation.

Yet this contribution comes under exceptionally heavy taxation, with an effective tax rate ranging between 55pc and 59pc, making banking one of the most heavily taxed sectors not only in Pakistan but across the region.

Governor SBP in his address hailed entry of Mashreq in Pakistan’s banking sector as a new beginning and a milestone. Since SBP remains committed to promoting innovative banking, consumer protection, adopting modern banking tools Mashreq’s transparent banking and latest practices in this sector will help achieve these goals. SBP is awarding licenses to five benches which will go operation by the end of this year and we wish them Godspeed and booming business, he said.

Earlier, in his welcome address, Chairman PBA Zafar Masud shared his thoughts about the vital of banks in supporting and promoting SMEs. Mashreq, he said always went beyond conventional banking and supported innovation and latest practices. It was noted on the occasion that 450 Pakistanis are part of Mashreq countywide network with 43pc women alone.

Group CEO of Mashreq Ahmed Abdelaal expressed gratitude to the speakers and fellow bankers for the warm welcome and great reception by the PBA.

We are in Pakistan for great digital transformation which is a hallmark of our group, he said. Commercial launch of Mashreq in Pakistan is indeed a milestone and a new chapter in banking services. Mashreq, he said takes pride in its ability to re-invent ad combines intelligence, confidence and simplicity which you will find all under one roof, he said.

Banking, he said was all about building bridges and with this spirit Mashreq is going to launch its operations. For us household account holders, entrepreneurs and businesses all are equally important and we are keen to serve them all with same spirit to evolve a health financial eco system in Pakistan.

Speakers on the occasion termed the first full-scale international deployment of Mashreq’s award-winning digital banking platform outside the UAE a pivotal milestone in Pakistan’s digital banking journey.

Mashreq they said is one of the leading financial institutions in the MENA region, with a strong presence in major financial centres of the world. The launch of its digital retail bank in the country is indeed a moment of rejoice for Pakistan’s banking industry, they held. Known for its digital-first approach, customer-centric solutions, and commitment to advancing financial inclusion, this launch marks an important milestone in further strengthening investor confidence and deepening international collaboration.

At the end, souvenirs were presented to Chairman of Mashreq, Abdul Aziz Al Ghurair, Group Chief Executive Officer (CEO), Ahmed Abdelaal, Governor SBP Jameel Ahmed and MoS Bilal AzharKayani. Mir Nejibur Rehman Adviser, PBA conducted the proceedings of the entire ceremony in a lively way.