SECP opens door to Shariah-compliant digital financing

April 15, 2026 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has issued new guidelines aimed at expanding the availability of Shariah-compliant digital financing products, making interest-free financial services more accessible across the country.

According to the regulator, digital financing companies can now launch halal financing products under the newly issued framework, which is designed to strengthen financial inclusion and promote ethical lending practices.

The SECP said that Shariah-compliant financial offerings may include installment-based purchase facilities, microloans, and housing finance solutions structured on risk-sharing and asset-backed principles.

It added that the introduction of Shariah-compliant digital financing services is expected to improve access to credit for underserved segments of society, including low-income individuals, small businesses, farmers, and freelancers, particularly those without formal credit histories.

The regulator further stated that such products would enhance transparency, improve pricing mechanisms, and raise the overall quality of financial services available to consumers.

According to the SECP, the initiative is also expected to boost competition within the financial sector by encouraging more diversified and compliant financial service offerings.

The commission noted that it is actively implementing a broader strategic action plan to promote a fully interest-free financial ecosystem in Pakistan, in line with long-term policy objectives.

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