Mashreq Pakistan, a subsidiary of the UAE’s Mashreq Bank, has secured a restricted license from the State Bank of Pakistan (SBP) to commence pilot operations as a digital retail bank in the country.
The approval marks a significant milestone in Mashreq’s expansion and highlights its commitment to delivering innovative digital financial services tailored to Pakistan’s growing population, according to an announcement.
The license follows the SBP’s issuance of five no objection certificates (NOCs) in January 2023, enabling Mashreq and four other entities to establish digital banks in Pakistan.
Mashreq is the first among the applicants to advance to the pilot stage, reflecting its readiness to support the SBP’s vision of enhancing financial inclusion through digital banking.
Mashreq Pakistan plans to roll out a digital banking model incorporating Islamic banking solutions. The bank aims to onboard millions of retail customers over the next five years, addressing both personal and business financial needs.
The initiative aligns with Pakistan’s evolving digital ecosystem, characterized by a youthful and tech-savvy population, and seeks to extend financial accessibility to underserved and unbanked communities.
Since establishing operations in 2023, Mashreq Pakistan has achieved key milestones, including in-principal approval for its digital banking framework and timely submission of an operational readiness report to the SBP.
The bank has invested in robust technology infrastructure, developed a comprehensive operational framework, and recruited top-tier talent to support its launch.
Mashreq’s entry into Pakistan reflects its broader strategy to drive digital transformation in financial services. With a presence in 14 countries, the bank has established itself as a leader in digital banking innovation.
Its expansion into Pakistan is expected to contribute significantly to the country’s financial ecosystem by introducing secure, efficient, and customer-centric banking solutions.
The move is also aligned with Mashreq’s “Rise Every Day” philosophy, emphasizing growth and innovation, and underscores its commitment to fostering financial inclusion and supporting Pakistan’s economic development.