ISLAMABAD: Aimed at making loans accessible to people who avoid interest (riba), the Securities and Exchange Commission of Pakistan has issued a practical guidebook to help lending Non-Banking Finance Companies (NBFCs) structure Shariah-compliant financing products.
The guideline provides guidance to NBFCs to develop and offer halal financing options for people who do not use conventional bank loans. It will enable consumers to access Shariah-compliant products such as installment plans, micro-loans, and housing finance.
Shariah-compliant digital financing will expand access for underserved groups, enabling low-income households, small businesses, farmers, freelancers, and gig workers to obtain financing more easily without traditional credit histories. The Shariah compliant lending products are based on risk-sharing and asset-backed models, promoting responsible and ethical finance while reducing the chances of exploitation and hidden charges.
There is a growing market demand for Islamic financial services. This initiative is expected to enhance competition in the non-bank financial sector. As more NBFCs offer Islamic financing products, customers will benefit from better pricing, improved transparency, and higher service standards.
Currently, five Lending NBFCs are fully Shariah-certified and are offering products in areas such as Buy-Now-Pay-Later (BNPL), nano-lending, housing finance, and microfinance. Several other companies have also approached SECP for guidance on developing Shariah-compliant products.
SECP’s analysis of 265 products offered by 89 Lending NBFCs shows that around 16 to 17 percent of existing products are already Shariah-compliant, indicating strong momentum in the sector.
The SECP has been implementing a Strategic Action Plan to support Pakistan’s transition towards a Shariah-compliant financial system, in line with constitutional requirements and the directives of the Federal Shariat Court.
