Raqami Islamic Digital Bank Limited has been awarded a restricted banking license by State Bank of Pakistan (SBP) under the Licensing and Regulatory Framework for Digital Banks to commence pilot operations as a digital retail bank.

The approval marks a defining moment in Raqami’s journey to become a digital retail bank offering a seamless, intuitive and inclusive banking experience powered by personalised products and services designed to meet customers’ evolving financial needs.

SBP has launched licensing and regulatory framework for setting up digital banks in Pakistan as a separate and distinct category in the banking business. Its purpose is to encourage innovation, improve financial access for customers and foster secure and responsible digital banking practices through a phased licensing process, with full commercial operations to follow the pilot phase.

In the lead-up to getting approval for the pilot, Raqami showed SBP it was ready to operate with strong technology and information security systems, solid risk management and controls and full compliance with Shariah rules and regulatory standards. The restricted pilot licence marks the start of an important phase to test Raqami’s full systems in a safe and controlled setting.

Abdullah Al-Mutairi, the chairman of the board of directors of Raqami Bank stated, “The global fintech and digital banking market is estimated to grow exponentially, based on rapidly transforming customer preferences for digital financial services and products. Raqami holds a similar promise for the people of Pakistan, reffecting the shareholders’ vision to transform banking in Pakistan through digital innovation, aligned with Islamic principles, for increased financial inclusion.

He highlighted the importance of innovation aligned with Islamic values and the role Raqami aims to play in advancing financial inclusion. “I would like to reaffirm the Board’s commitment to upholding the highest standards of financial integrity and service excellence as we move forward, while delivering secure and meaningful digital experiences that bridge financial gaps and contribute to Pakistan’s national development. I would like to thank the State Bank of Pakistan for its continuous support and guidance through the process of operationalising Raqami and in placing trust in our vision, compliance and operational capabilities. Under the leadership of the board of directors and CEO, I would also like to recognise the Raqami team and everyone who contributed to this achievement.”

Umair Aijaz, the chief executive officer (CEO) of Raqami Bank, remarked, “Today marks more than just a regulatory milestone — it signals the beginning of a new era in Pakistan’s financial journey. With SBP’s approval to commence pilot operations, Raqami proudly takes an important step forward to becoming a Shariah-compliant digital retail bank, built entirely from the ground up. Raqami has leveraged its greenfield status to build a strong framework for a digital bank — one that is actively reimagining how Pakistanis experience financial services, placing convenience, transparency and trust at the heart of every interaction.”

He continued, “We’re not just preparing for the future — we’re architecting it, guided by Islamic principles and driven by innovation. Our mission is to deliver easy to use, inclusive and ethical financial solutions that replace complexity with clarity and remove barriers to access – by offering tailored products and services designed around customer needs. We believe banking should be as seamless as using your phone, as principled as your values and as accessible as your aspirations. Raqami is more than just a bank — it is a movement towards financial dignity and digital empowerment for every Pakistani.”

Dr Mufti Muhammad Imran Ashraf Usmani, the chairman of Shariah Board Raqami Bank said, “As a digital Islamic retail bank, Raqami is guided by the ethos and values of Islam, ensuring that all offerings are interest-free, fair, ethical, asset- backed and strictly adhere to Shariah tenets. Since the start of its operationalisation phase, the Shariah Board has been fully engaged with Raqami to ensure all products and services are compliant with Islamic jurisprudence. Raqami bank’s entry into Pakistan’s banking landscape will enable customers to participate in a completely riba-free digital financial ecosystem, in line with the growing demands of Pakistan’s population.”

Going forward, Raqami will deepen its investment in a scalable and interoperable technology platform powered by Open APIs, Banking-as-a-Service (BaaS) capabilities and intelligent automation. The platform will enable seamless integration with fintechs, telecom operators and other ecosystem players to deliver real-time, personalized and secure financial services as part of its digital growth roadmap. Their aim over the next five years is to catalyse a transformation of Pakistan’s banking industry, by leading with inclusiveness, innovation, excellence in compliance and convenience.

Raqami is backed by Pakistan Kuwait Investment Company (Private) Limited, a joint venture between Pakistan and Kuwait governments and Enertech Holding Company KSC, a subsidiary of the sovereign wealth fund of Kuwait, the Kuwait Investment Authority. This strategic shareholding reflects Raqami’s strong institutional foundation, underpinning a strong, long-term commitment to supporting Pakistan’s digital economy and the unserved and underserved segments of Pakistan, aligned with SBP’s vision.

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