SECP opens door to Shariah-compliant digital financing

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

The framework will help lending Non-Banking Finance Companies (NBFCs) structure and launch halal financing products, strengthening financial inclusion and promoting ethical lending practices.

It will also enable consumers to access Shariah-compliant offerings such as installment-based purchase facilities, microloans, housing finance, Buy-Now-Pay-Later (BNPL) solutions, nano-lending, and other risk-sharing, asset-backed financing models.

The SECP noted that these guidelines are particularly designed to support people who avoid interest-based (riba) financing, helping underserved segments such as low-income households, small businesses, farmers, freelancers, and gig workers, especially those lacking formal credit histories.

It further stated that Shariah-compliant digital financing is expected to improve access to credit, enhance transparency, strengthen pricing mechanisms, and raise the overall quality of financial services available to consumers.

The regulator added that the growing demand for Islamic financial services is likely to boost competition in the non-banking financial sector, as more NBFCs introduce diversified and compliant financial products.

Currently, five lending NBFCs are fully Shariah-certified and already offering Islamic financing solutions, while several others have sought SECP guidance to develop similar offerings.

An analysis cited by the SECP shows that around 16–17 percent of 265 products offered by 89 lending NBFCs are already Shariah-compliant, indicating rising momentum in the sector.

The commission also highlighted that it is actively implementing a broader Strategic Action Plan to support Pakistan’s transition toward a fully Shariah-compliant financial ecosystem, in line with constitutional requirements and directives of the Federal Shariat Court.

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