ISLAMABAD (The Thursday Times) — Kuwait-backed Raqami Islamic Digital Bank is preparing to launch operations in Pakistan with a $100 million investment, marking a landmark moment for the country’s digital finance ecosystem and a powerful endorsement of its reform-driven growth trajectory. Backed by institutional Gulf capital linked to the Kuwait Investment Authority, Raqami’s entry positions Pakistan as an increasingly attractive destination for high-quality, long-term investment in technology-led financial services. The move underscores rising international confidence in Pakistan’s market potential, regulatory modernisation, and expanding digital economy.
Raqami is being developed as Pakistan’s first fully Shariah-compliant digital retail bank under the State Bank of Pakistan’s digital banking framework, which was introduced to deepen financial inclusion, strengthen competition, and modernise the country’s banking sector. Unlike conventional fintech wallets or branchless add-ons from legacy banks, Raqami is structured as a licensed, full-stack digital bank designed to deliver comprehensive Islamic banking services through a mobile-first platform. Its model reflects a new generation of financial institutions that combine regulatory robustness with technological agility.
The bank is expected to commence full commercial operations in February 2026, following the successful completion of its pilot phase under a restricted licence granted by the State Bank of Pakistan. Its sponsors have outlined a five-year investment roadmap totalling $100 million, aimed at building scalable digital infrastructure, expanding its product suite, and onboarding up to one million customers within its first three years of operations. These targets place Raqami among the most ambitious digital banking ventures ever launched in Pakistan.
A defining feature of Raqami’s story is the depth and quality of its backing. The project is linked to Pakistan Kuwait Investment Company, a long-standing bilateral investment platform jointly owned by the governments of Pakistan and Kuwait, and widely seen as a conduit for sovereign-linked Gulf capital into Pakistan. This institutional foundation brings not only financial strength but also strategic credibility, reinforcing confidence in Raqami’s long-term commitment to the Pakistani market and its ability to scale sustainably.
Equally important is the regulatory milestone Raqami represents. It is among the first cohort of digital retail banks to progress from in-principle approval to a restricted operational phase under Pakistan’s new digital banking regime. Its transition toward a full commercial licence illustrates the practical success of the State Bank of Pakistan’s framework and signals a maturing regulatory environment capable of attracting and retaining high-calibre international investors.
Raqami’s product vision extends well beyond basic payments and transfers. The bank is positioning itself as a comprehensive Islamic digital bank with a strong focus on retail consumers and small and medium-sized enterprises. By offering Shariah-compliant savings, financing, and transaction products through a seamless digital interface, Raqami aims to unlock new segments of demand and bring underserved individuals and businesses into the formal financial system, supporting inclusive economic growth.
The timing of Raqami’s launch is especially significant as Pakistan’s digital economy accelerates. Rapid growth in smartphone penetration, digital payments adoption, and fintech innovation has created a fertile environment for next-generation digital banks. Raqami is entering this market at a moment when consumers are increasingly comfortable with app-based financial services and when regulatory infrastructure has been aligned to support safe, large-scale digital banking.
Beyond its domestic impact, Raqami carries strategic value for Pakistan’s international positioning. It deepens financial cooperation between Pakistan and Kuwait and reflects a broader trend of Gulf investors expanding into South Asian digital finance. By embedding sovereign-linked Gulf capital into Pakistan’s regulated banking sector, Raqami strengthens economic ties between the two countries and highlights Pakistan’s emerging role as a regional hub for Islamic fintech innovation.
