By Muhammad Soban Islamabad, June 13, 2022, (INP-WealthPK): Islamic banking has shown unprecedented growth in Pakistan during the last two decades as its assets have reached Rs5,577 billion, WealthPK reports. The acting governor of the State Bank of Pakistan (SBP), Dr Murtaza Syed, said that Islamic banking has a bright future in Pakistan. It is the future of Pakistan’s economy. According to statistics released by the SBP, the Islamic Banking Industry (IBI) reached a new peak in 2021, as its assets reached Rs5,577 billion, showing the highest ever increase of Rs1,308 billion. On the other hand, its deposits increased by Rs822 billion to reach Rs4,211 billion. The statistics show that IBI assets increased by 30.6 percent and its deposits swelled by 24.2 percent in 2021. This unprecedented growth led to an increase in market share for Islamic banking assets and deposits in the overall banking industry from 18.6 percent to 19.4 percent in December 2021. The increase in assets of the Islamic Banking Industry was driven by both financing to the private and public sectors and investments in Shariah-compliant securities. In 2021, IBI financing increased by Rs716 billion (38.1 percent), which is also the highest increase ever recorded during a year. Furthermore, IBI’s investments grew by Rs591 billion (46.7 percent) in the same year due to the issuance of Pakistan’s sovereign Sukuk. The IBI’s current deposits and savings deposits increased by a significant amount of Rs441 billion and Rs277 billion, respectively, during the second half of the last year. In addition to the growth in deposits, 500 new branches of Islamic banking were established in the country. Presently, there are 3,956 branches of Islamic banking in 125 districts of the country, making up around 25 percent of the total number of commercial bank branches in Pakistan. Dr Murtaza Syed said that Islamic finance is widely recognised as one of the fastest-growing sectors of the global financial market. The Islamic economic system is meant to provide decent and prosperous life to everyone along with a minimum standard of living. He added that Islamic banking is playing a major role in the sustainable development and prosperity of the country. Dr Murtaza said that Islamic banking has played a central role in the growth of home financing in the country. Islamic fintech is aligned with the SBP’s digitalisation and financial goals. The market size of Islamic fintech for the member countries of the Organisation of Islamic Cooperation has reached $49 billion in transactions, according to the global Islamic fintech report 2021. It represents just 0.7% of the global figure, but it is projected to increase by 20% to 21% and reach $128 billion by 2025, according to the report available with WealthPK.