Samba Bank Limited has received in-principle approval from the State Bank of Pakistan (SBP) to begin its transition from a conventional banking model to a fully Shariah-compliant financial institution.
The approval marks a major milestone in the bank’s strategic plan to offer Islamic financial services across its branch network, aligning with Pakistan’s growing demand for Shariah-based banking products.
SBP Grants Conditional Approval for Islamic Banking Transition
According to the official notice shared with the Pakistan Stock Exchange (PSX), the SBP’s approval is conditional upon Samba Bank’s compliance with all regulatory requirements and guidelines issued by the central bank.
This includes restructuring its operations, ensuring Shariah governance standards, and meeting all prudential criteria before obtaining final authorization to operate as a full-fledged Islamic bank.
The transition aligns with the government’s broader vision to shift Pakistan’s financial system toward interest-free banking. The SBP has been encouraging both local and international banks to enhance their Islamic banking footprints to promote financial inclusion and ethical banking practices.
Samba Bank’s Strategic Plan for Full Conversion
Earlier this year, in March 2025, Samba Bank had formally submitted its conversion plan to the PSX and informed the regulator of its intent to adopt a 100 percent Shariah-compliant framework.
The latest development clears the path for the bank to expand its Islamic products and services portfolio, pending completion of all regulatory processes.
Samba Bank has also notified key authorities, including the Securities and Exchange Commission of Pakistan (SECP) and the SBP’s Banking Policy and Regulations Department, about the approval.
The conversion process will involve establishing a Shariah Board, redesigning financial products to comply with Islamic principles, and transforming its operational structure in line with AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) standards.
Growing Demand for Islamic Banking in Pakistan
Pakistan’s Islamic banking sector has seen steady growth in recent years, with its share in the overall banking industry surpassing 20 percent of total assets. The transition of conventional banks like Samba underscores the strong market confidence in interest-free finance models.
Experts believe this shift will not only enhance the competitiveness of Pakistan’s banking sector but also attract a broader customer base seeking ethical and transparent financial solutions.
The SBP continues to provide regulatory support for Islamic banking expansion through flexible licensing frameworks and conversion facilitation policies.
A Step Toward Financial Transformation
Samba Bank’s move represents a strategic effort to align with Pakistan’s national financial transformation agenda and global trends favoring Islamic finance.
Once the conversion is complete, the bank is expected to introduce innovative Shariah-compliant products, focusing on retail, corporate, and SME banking segments while adhering to ethical and socially responsible principles.
This transformation signals a strong commitment to modernize Pakistan’s banking landscape while ensuring inclusivity and compliance with Islamic values.
