ISLAMABAD: Pakistan Islamic finance National Savings Rs40 billion is the amount mobilised through Islamic investments by the Central Directorate of National Savings, in a sign of how fast Shariah compliant finance is growing in the country. The figure was reported in the latest weekly review of Islamic finance, which also set out a target of Rs85 billion for Shariah investment mobilisation in the fiscal year 2026-27. The growth comes as Pakistan moves towards a financial system that follows Islamic principles, and as savers look for options that match their faith.
The Central Directorate of National Savings Islamic investments are the retail face of this growth. National Savings is where ordinary Pakistanis put their savings, and its Islamic products let them earn a return without interest. The directorate has mobilised Rs40 billion, or about 144.42 million dollars, through these investments so far, and the target for the year is Rs85 billion, or about 306.7 million dollars. The gap between the amount raised and the target shows how much room the programme still has to grow.
The Shariah investment target Rs85 billion FY2026-27 is part of a wider push. The government has set a goal of removing interest from the economy by January 2028, and the growth of Islamic finance is central to that plan. The share of Islamic bonds in the government’s overall debt portfolio has already risen to 14 percent, with a target of 20 percent by the fiscal year 2028. New local currency sukuk issuance is expected to cross Rs3 trillion in 2026, against Rs2.2 trillion issued in 2025, according to industry estimates reported earlier this year.
The Maldives Pakistan Business Forum Shariah financing call shows that the interest is not only at home. Maldivian President Dr Mohamed Muizzu called on Pakistani financial institutions and businesses to explore investment opportunities in Shariah compliant financing, Sukuk issuance and Halal industries in the Maldives, during the recent Maldives Pakistan Business Forum 2026 in Islamabad. The call came as the two countries looked for new ways to work together, and it put Islamic finance at the centre of the discussion.
The NBP Funds best Islamic equity fund manager FY2026 award is another sign of the sector’s strength. NBP Fund Management, the asset management company of the state owned National Bank of Pakistan, was named the best Islamic equity fund manager for the 2025-26 fiscal year by the CFA Society Pakistan. It edged out Al Meezan Investment Management, Pakistan’s largest Islamic fund house, which was named the runner up. The award was given at the society’s annual excellence awards, which also recognise banks and other financial institutions.
The Islamic banking assets Rs18 trillion December 2026 projection shows where the industry could be heading. Industry projections suggest that total Islamic banking assets could reach between Rs18 trillion and Rs19 trillion by December 2026, against Rs14.47 trillion at the end of 2025. Deposits are expected to rise to between Rs13.5 trillion and Rs14.5 trillion, against Rs11.04 trillion a year earlier. The sector’s share of total banking assets could rise to between 25 and 27 percent, and its share of deposits to between 30 and 32 percent. These are projections based on current trends, and the actual figures may differ.
The funds industry tells the same story. Assets in Shariah compliant mutual funds reached Rs2.1 trillion at the end of February 2026, up from Rs1.7 trillion a year earlier, and close to half of the industry total of Rs4.35 trillion, according to data from the Mutual Funds Association of Pakistan. Islamic banks are expanding in parallel, with Meezan Bank adding Rs632 billion in deposits in the latest period. The benchmark KSE-100 index rose about 44 percent in the year to June 2026, closing at 180,302 points, and Islamic funds shared in that rise.
The regulators are also moving. The State Bank of Pakistan has amended Regulation R-6 of its Prudential Regulations for Corporate and Commercial Banking, limiting banks’ and development finance institutions’ investments in individual start ups, including fintech firms, to the lower of 5 percent of Tier 1 capital. Under the revised rules, investments in individual mutual funds, real estate investment trusts and private equity funds are capped at the lower of 5 percent of Tier 1 capital or 20 percent of the fund’s units. The Securities and Exchange Commission has also been updating its rules, including a new framework for real estate investment trusts and a new subclass under its voluntary pension scheme for exchange traded funds.
Readers should note that the figures for the end of 2026 are projections, not results, and they come from industry estimates reported in May this year. The sukuk and asset figures could change with the market, and the actual outcomes will depend on regulation, the economy and investor demand. What is certain is the direction: National Savings has mobilised Rs40 billion through Islamic investments, the Maldives has asked Pakistan to bring its Shariah finance expertise to its own market, and the funds industry has named its best Islamic manager for the year. The next figures to watch are the National Savings total at the end of the fiscal year, and whether the Rs85 billion target is met.
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