Al Meezan bullish on Pakistan’s huge untapped market for Shariah investments

With over 91 million bank account holders in Pakistan as at June 2024, according to the latest available official statistics from the State Bank of Pakistan, only about 1.5 million active investors registered with various fund managers. Al Meezan Investment Management is bullish of growth prospects as this firm is already the country’s largest Shariah compliant asset manager - with around half a million of those investors being its clients.

“The minute you give people a Shariah compliant profit-making instrument, the demand is just going to come in,” said Imtiaz Gadar, CEO of Al Meezan Investment Management. “Even for retail investors, we’re working to make all kinds of products accessible in smaller ticket sizes and digital formats.”

Imtiaz said millions of Pakistanis already within the banking system are still looking for accessible, trustworthy and faith-aligned investment options. “In a country where 95% of the population is Muslim, Islamic deposits as a percentage of the total banking sector are still below 25%, while total investment AuM is roughly 50% Shariah compliant,” he said. “It shows that once investors enter the market, they naturally gravitate toward Shariah compliant products.”

The numbers contrast sharply with Malaysia, where the investing mindset has reached deep into the retail base – with over 18 million registered investors in September 2025 out of an estimated 35 million population, according to the Securities Commission Malaysia.

So far, investment participation in Pakistan remains concentrated among urban, higher-income groups. For millions of others, the barriers are still high: limited awareness, complex processes and few digital channels. But change is coming fast, said Imtiaz.

Pakistan’s fintech sector is opening the door to a new generation of investors through mobile-first platforms, simplified onboarding and integrated Shariah screening. Fund houses and fintechs are betting that these tools will help convert savings into investments at scale.

Regulators are also laying the groundwork for expansion. Stronger Shariah screening standards, clearer fund governance and tighter disclosure rules have improved investor confidence and market credibility. Together, these reforms are reshaping the competitive landscape and giving Islamic funds an edge over conventional offerings.

For Pakistan, the next phase is all about inclusion to move from awareness to action – delivering simple, relatable and digital-first investment options that align with everyday needs and values.

“We don’t want Islamic investors to pay a price for being Islamic, but at the same time we wouldn’t want the industry to compromise on principles just to compete with conventional returns.”