Islamabad (TDI): A digital bank, backed by Kuwait Investment Authority, is planning to begin operations this year in Pakistan, after completing its pilot phase.
The Raqqami Islamic Digital Bank (RIDB) has committed $100 million in capital as it prepares to launch in February. It will operate as Pakistan’s first fully digital Shariah-compliant bank, offering online financial services including savings, financing, and payments tailored to individuals and small-to-medium enterprises.
Finance Adviser Khurram Shehzad described the arrival of RIDB as a “strong vote of confidence” in Pakistan’s economic outlook and ongoing reform efforts.
The investment, he noted, underscores growing investor confidence and reflects the strengthening ties between Pakistan and the Gulf region’s financial sector.
The State Bank of Pakistan has already issued a no-objection certificate to Raqqami, clearing the regulatory path for the bank to begin its services.
RIDB’s focus on financial inclusion aims to bring underserved segments, particularly those without access to traditional banking, into the formal financial system. It plans to leverage digital tools to provide convenient, secure, and accessible banking options.
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The development comes amid broader efforts by Islamabad to attract foreign investment, particularly from the Gulf Cooperation Council (GCC) countries, as part of a strategy to bolster economic stability and expand financial services.
In recent months, Pakistan has stepped up engagement with regional partners on investment and economic cooperation fronts; an effort reflected in meetings between Pakistani officials and Gulf counterparts to explore shared growth opportunities.
Analysts say the entry of a Shariah-compliant digital bank backed by Kuwait will help modernize Pakistan’s banking ecosystem and support its growing base of tech-savvy consumers and entrepreneurs.
The move also aligns with the global trend toward digital financial services, which have gained prominence as alternatives to traditional branch-based banking.
As Pakistan continues to pursue economic reforms, diversify its financial sector, and deepen ties with Gulf investors, the launch of Raqqami marks a significant milestone.
