In a major boost to Pakistan’s digital economy and bilateral ties with Kuwait, Prime Minister Shehbaz Sharif formally issued a commercial banking license to Raqami Islamic Digital Bank on Tuesday, February 10, 2026.
The ceremony, held in Islamabad, marks the bank’s transition from pilot operations to becoming Pakistan’s third fully licensed digital retail bank, following in the footsteps of pioneers like Easypaisa Bank and Mashreq Pakistan.
Islamabad: Prime Minister Muhammad Shehbaz Sharif addressing the ceremony of awarding license to Raqami Islamic Bank as 3rd Digital Retail Bank. pic.twitter.com/eVRClyliWs
— Government of Pakistan (@GovtofPakistan) February 10, 2026
A Landmark for Pak-Kuwait Economic Diplomacy
Prime Minister Shehbaz Sharif described the launch as a “landmark development” that translates decades of political and cultural brotherhood into tangible economic cooperation.
- Kuwaiti Backing: Raqami is a high-profile venture backed by the Kuwait Investment Authority (KIA) through:
- Pakistan Kuwait Investment Company (PKIC): A 70.13% stake holder.
- Enertech Holding Company: A subsidiary of KIA.
- Investment Impact: The bank launches with an initial investment of $100 million, signaled by experts as a “vote of global trust” in Pakistan’s ongoing structural reforms and economic stability.
- Leadership Sentiments: PM Shehbaz expressed deep gratitude to the Kuwaiti leadership, while the Kuwaiti Ambassador, Nassar Abdul Rahman Jasser, hailed the license as a “practical manifestation” of the deep-rooted ties between the two nations.
What Raqami Offers: The Future of Digital Sharia Banking
Raqami (which translates to “Digital” in Arabic) aims to revolutionize the local financial landscape by targeting the “unserved and underserved” segments of the population.
| Feature | Details |
| Sharia Compliance | Fully Sharia-compliant digital solutions overseen by a board chaired by Mufti Muhammad Imran Ashraf Usmani. |
| Initial Products | Savings accounts, Term Deposit Receipts (TDRs), and Digital Supply Chain Financing. |
| Technology Platform | Built on the cloud-native Digibanc™ platform, allowing for rapid P2P payments via Raast and AI-enabled customer experiences. |
| Financial Inclusion | Aligns with the State Bank’s 2028 vision to reach 75% financial inclusion across Pakistan’s 240 million residents. |
The Evolving Digital Landscape
Raqami joins a competitive elite group of five original applicants selected by the State Bank of Pakistan (SBP) in 2023.
- The Competition: While Raqami is the third to secure a commercial license, other players like Hugo Bank and KT Bank are also in various stages of their pilot and operational readiness assessments.
- Efficiency Gains: Analysts suggest that the entry of international digital banks will drastically reduce transaction times and costs, facilitating a “Look East” economic shift toward regional digital integration.
Key Takeaway
The issuance of this license is not just a banking update; it is a strategic economic bridge. By combining Kuwaiti capital with Pakistani tech talent, Raqami is positioned to become a cornerstone of the country’s modernized financial ecosystem.
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