Raqami Islamic Digital Bank is preparing to commence commercial operations in Pakistan in February, supported by an investment plan of $100 million over the next five years. Based in Karachi and backed by the Kuwait Investment Authority, the bank has completed its pilot phase and is positioning itself as Pakistan’s first fully Shariah compliant digital retail bank. The initiative reflects growing momentum within the country’s digital financial services landscape as regulators and private players push to expand access to formal banking channels through technology driven models.
The bank has already invested approximately 8 billion rupees, equivalent to $28.6 million, to reach the launch stage and plans to allocate the majority of the remaining capital toward strengthening its technology stack, expanding human resources, and enhancing information security frameworks. Raqami aims to reach at least one million customers within three years of operations, with a primary focus on small and medium enterprises, freelancers, and underserved population segments that have traditionally faced limited access to tailored banking products. Chief Executive Officer Umair Aijaz stated that the bank sees strong opportunity in Pakistan’s SME segment, noting that digital banking solutions in this space have gained traction globally due to their efficiency and scalability.
To support its digital infrastructure, Raqami has entered into multiple partnerships, including an agreement with Euronet Pakistan Pvt Ltd to enhance its payment and transaction capabilities. The collaboration covers services such as payment switching, card management, credit card processing, point of sale and e commerce acquiring, ATM controller operations, and fraud management solutions. According to Aijaz, this partnership is expected to help develop an integrated and cloud ready digital banking platform that improves operational efficiency while delivering a streamlined customer experience. The bank is targeting operational break even within four years, aligning its growth strategy with sustainable financial performance rather than rapid expansion alone.
Raqami has also established a five member Shariah Board chaired by Dr Mufti Muhammad Imran Ashraf Usmani to ensure that all products, services, and transactions strictly adhere to Islamic principles. The bank’s launch coincides with broader regulatory developments, as SBP has granted No Objection Certificates to five entities seeking digital banking licenses, including Easy Paisa, Hugo Bank, KT Bank, Mashreq Bank UAE, and Raqami. SBP’s digital banking framework, introduced in January 2022, enables full service banking operations through digital platforms without reliance on physical branches. Chairman Abdullah Al Mutairi highlighted Pakistan’s significance for Islamic finance, citing a population of 240 million and an Islamic banking industry exceeding Rs 8 trillion as of June 2023, representing nearly one fifth of the financial sector. Raqami plans to serve SMEs, agriculture related businesses, blue collar workers, women, youth, and freelancers, contributing to financial inclusion while strengthening Pakistan’s evolving digital financial ecosystem.
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