VEON’s Mobilink Microfinance Bank Launches Islamic Banking Operations in Pakistan

Core Viewpoint - VEON Ltd. has launched Islamic banking operations through its subsidiary, Mobilink Microfinance Bank, in response to increasing customer demand for Shariah-compliant financial services in Pakistan [1][4]. Group 1: Launch and Expansion - Mobilink Bank inaugurated its first dedicated Islamic banking branch in Karachi, with plans for a second branch in Peshawar and a phased rollout across the country [2]. - The State Bank of Pakistan granted Mobilink Bank an Islamic Banking license earlier in 2025, enabling the launch of these services [2]. Group 2: Strategic Goals - The launch of Islamic banking services aligns with Mobilink Bank's strategy to enhance financial inclusion for individuals, micro-entrepreneurs, and small businesses in Pakistan [3]. - The Islamic banking portfolio will include Shariah-compliant deposit and financing products tailored to meet everyday financial needs and support business growth [3]. Group 3: Market Context - As of September 2025, Islamic banking assets in Pakistan reached approximately PKR 12.7 trillion (around USD 44 billion), representing 21.6% of total banking sector assets, with deposits accounting for 26.5% of total deposits [4]. - Year-on-year growth for Islamic banking assets and deposits was reported at 28.3% and 29.7%, respectively, indicating strong momentum and rising customer adoption in the sector [4]. Group 4: Company Commitment - The Chairman of Mobilink Bank emphasized the commitment to inclusive, customer-centric financial services, highlighting the strong demand and potential for Islamic banking in Pakistan [4]. - The President and CEO of Mobilink Bank noted that expanding into Islamic banking allows the company to meet the needs of a significant segment of the population through transparent, faith-aligned products [4].