The Government of Pakistan has released a comprehensive strategy for the gradual transition to an interest-free financial system, aiming to preserve financial stability while avoiding major disruptions to the economy.
According to the Ministry of Finance’s report, “Pakistan’s Financial System Strategy Beyond 2027,” the successful implementation of an interest-free financial system will depend on addressing several legal, institutional and economic challenges.
The report states that the transition framework has been developed in light of the Federal Shariat Court’s 2022 ruling and the 26th Constitutional Amendment, while emphasizing that the shift will be carried out in phases to minimize economic risks.
The Ministry of Finance said training programs have already been launched to align conventional banks with Islamic finance principles.
It also confirmed that, after 2027, the State Bank of Pakistan will formulate and implement monetary policy in accordance with Shariah-compliant financial principles.
The government said the phased approach is intended to ensure a smooth transition while maintaining overall financial and economic stability.
