Musharakah dominates Pakistan’s Islamic money market contracts

PAKISTAN: Islamic money market transactions in Pakistan totaled PKR142.6 billion (US$499.1 million) on the 25th May 2026, according to data from the State Bank of Pakistan (SBP). Transactions involved Islamic banks, conventional banks, Islamic banking branches and non-bank financial institutions, with Musharakah emerging as the dominant structure for liquidity management.

Activity between Islamic banks and Islamic banking branches reached PKR38.4 billion (US$134.4 million), while transactions between conventional and Islamic banking institutions amounted to PKR31.9 billion (US$111.65 million). The SBP data indicated that weighted average expected returns ranged from 9.35% to 11.75% across various tenors and Shariah compliant contracts.

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