Islamic banking and insurance have shown significant progress in recent years in Pakistan, compared to conventional banks. In 2008, as many as 217 new branches of Islamic banks were established taking the tally to 506 from 289.
State Bank of Pakistan (SBP) reported that the growth of the Islamic banking sector was more than that of conventional banking and there is still a lot of potential.
At the end of December 2007, Islamic banking deposits were Rs 147b and assets were estimated at Rs 206b. There was also a comprehensive increase of more than 30 per cent in its reserves.
Growth continued in 2009 and according to the SBP, the sector grew 12.4 per cent by July- September 2009. Total assets of Islamic banking in the country reached Rs 325b in September 2009 compared with Rs 313b in June 2009.
The Islamic Banking industry envisions achieving a share of 12 per cent by 2012 according to the SBP. Country Head of Albaraka Bank, Shafqaat Ahmad said that Islamic banking provides a solution to all economic crises being faced by the world.