{"id":2721,"date":"2025-01-15T11:45:42","date_gmt":"2025-01-15T11:45:42","guid":{"rendered":"https:\/\/pkfin.kotenterprises.dev\/?p=2721"},"modified":"2025-01-15T11:45:42","modified_gmt":"2025-01-15T11:45:42","slug":"ubl-converts-all-conventional-branches-in-kp-balochistan-to-islamic-banking","status":"publish","type":"post","link":"https:\/\/pkfin.kotenterprises.dev\/?p=2721","title":{"rendered":"UBL Converts All Conventional Branches in KP, Balochistan to Islamic Banking"},"content":{"rendered":"

January 15, 2025<\/strong><\/p>\n

United Bank Limited (PSX: UBL)<\/a> has announced the successful conversion of all its branches in Khyber Pakhtunkhwa (KP) and Balochistan to Islamic banking, aligning with Pakistan\u2019s recent legislative shift toward a fully Shariah-compliant financial system.<\/p>\n

This move follows the passage of a law in December 2024 by the National Assembly mandating the transformation of the entire banking sector to Islamic banking by 2027. The legislation stems from a directive issued by the Federal Shariat Court to eliminate riba (interest) from Pakistan\u2019s financial system.<\/p>\n

UBL\u2019s transition reflects the growing prominence of Islamic finance in Pakistan<\/a>. As of mid-2023, Islamic banking assets<\/a> reached Rs. 7.2 trillion, accounting for 21 percent of the total banking industry, according to the State Bank of Pakistan (SBP). Deposits in Islamic banks stood at Rs. 5.8 trillion, comprising nearly 23 percent of the country’s total banking deposits.<\/p>\n

Currently, only five of Pakistan\u2019s 42 commercial banks operate as fully Islamic institutions. The conversion of conventional banks to Islamic banking involves extensive restructuring, including adjustments to loan portfolios, staff training, and the development of Sharia-compliant financial products.<\/p>\n

To support this transition, the SBP has implemented a Transformation Plan (2023-2027), offering technical guidance and incentives to ensure a seamless shift for all banks.<\/p>\n

UBL\u2019s move underscores the growing momentum in Pakistan\u2019s banking sector to embrace Islamic finance<\/a> principles, setting the stage for a fully Shariah-compliant banking system by 2027.<\/p>\n","protected":false},"excerpt":{"rendered":"

January 15, 2025 United Bank Limited (PSX: UBL) has announced the successful conversion of all its branches in Khyber Pakhtunkhwa (KP) and Balochistan to Islamic banking, aligning with Pakistan’s recent legislative shift toward a fully Shariah-compliant financial system. This move follows the passage of a law in December 2024 by the National Assembly mandating the […]<\/p>\n","protected":false},"author":1,"featured_media":2722,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"_FSMCFIC_featured_image_caption":"","_FSMCFIC_featured_image_nocaption":"","_FSMCFIC_featured_image_hide":"","footnotes":""},"categories":[8],"tags":[],"class_list":["post","format-standard"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t