Page 91 - CMA Journal (Mar-Apr 2025)

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Table 1: Industry Progress and Market Share (Amount in PKR Billion)
Share in Overall Banking
Particulars Period Yearly Growth (YoY)

Industry (%)

Mar-23 Dec-23 Mar-24 Mar-23 Dec-23 Mar-24 Mar-23 Dec-23 Mar-24
Assets 7,532 8,994 9,235 26.7 24.4 22.6 19.4 19.4 19.9
Deposits 5,352 6,749 6,875 26.0 30.8 28.5 21.5 23.2 23.2
Investments (net) 3,118 4,235 4,405 41.6 38.8 41.3 15.8 16.3 16.3
Financing (net) 3,226 3,335 3,259 19.8 7.1 1.0 27.5 27.4 28.0
Number of Islamic 22 22 22 - - - - - -
Banking Ins tu ons
Number of Branches 4,427 4,955 5,101 10.9 12.7 15.2 - - -
Number of Islamic
1,832 1,922 1,916 25.4 26.8 4.6 - - -
Banking Windows
*number includes sub-branches
-
Source: Data submi ed by banks under quarterly Repor ng Chart of Accounts (RCOA)
Islamic Banks vs. Conventional Banks
a
Category Islamic Banks Conventionnal Banks
o
c
p
-
Core Principles Riba-free, asset-backed, risk-sharing Interest-bass xximization for
shareholdeers
e
Asset-Backed? Yes – real, tangible assets Not necessaarily asset-baccked
c ce From trade/services linked to real economy From intereest on capital
m
a
e
M
a
Products Murabaha, Ijarah, Mudarabah, Musharakah Fixed-intereest loans
c
r
Operations t t-and-loss sharing, Shariah-compliant Debt-basedd sst models
t
Financing Asset-backed: Murabaha, Ijarah, Musharakah, Personal/buusiness loans, mortgages with
M
a
Mudarabah interest
a
Accounts Muda - -sharing), Qard/Wadiah Interest-beaaring current/ssavings accounts
d
a
(safe custody)
Investments Ethic ng, no haram sectors Fixed returnns, no ethical sscreen
t
k
Risk & Liquidity Sukuk (Islamic bonds), asset-backed Treasury billls, interest-based instrumennts
R
Regulation IFSB, AAOIFI, CPIFR, Shariah Governance, IFMI Basel Accorrds, IFRS, FATF, IOSCO, FSB
e
p
o
d
u
Ethical Focus Avoids haram, supports Zakat, social justice CSR option een
Future Outlook Fintech growth, ESG integration, digital AI-driven, oopen banking, customer-cenntric
l
c
innovation, Islamic ETFs digital evolution
v
Islamic Banking’s Future in Pakistan
Pakistan aims to achieve full Shariah compliance in
its banking sector by December 2027, as per the
Federal Shariat Court’s directive. As of now, Islamic
banking assets in Pakistan total Rs. 9.88 trillion,
accounting for 19% of the total banking assets, and
Islamic deposits stand at Rs. 7.59 trillion, which is
24% of total deposits.
The Islamic finance market in Pakistan is expected
to grow from $7.99 billion in 2024 to $8.94 billion in
2025, with a compound annual growth rate (CAGR)
of 11.9%. Meezan Bank and other Islamic banking
windows aim to capture 30% of banking assets by
2025. According to Moody’s, the sector is expected
to reach a 30% market share by 2026, with annual
growth between 25-28%.
ICMA’s Chartered Management Accountant, Mar-Apr 2025 89