Raqami Islamic Digital Bank has announced it will officially launch its commercial operations in Pakistan next month, backed by a $100 million investment plan spread over the next five years.
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The bank, which is backed by the sovereign wealth fund Kuwait Investment Authority, has completed its pilot phase and is set to begin serving customers in February 2026. Its primary goal is to attract one million customers within three years, with a particular focus on serving Small and Medium Enterprises (SMEs) and independent entrepreneurs.
Strategic Focus and Financials:
- Investment Allocation: The $100 million capital will be invested primarily in people, technology, and information security. The bank has already spent 8 billion rupees ($28.6 million) to reach the launch stage.
- Financial Target: Raqami Bank expects to reach its break-even point in four years.
- Ownership Structure: The bank is partly owned by Pakistan Kuwait Investment Co., which also holds a stake in Meezan Bank Ltd.
Market Context:
Raqami Bank enters a growing digital banking sector in Pakistan, which expanded after the central bank licensed five new digital banks in 2023. It will compete with established and new players such as Easy Paisa (Telenor), Mashreqbank PSC (UAE), Hugo Bank, and Buraq Bank. These digital banks initially operate under a limited license but can upgrade to full banking licenses after three years.
“We are very excited to explore this digital banking opportunity in the SME sector,” said CEO Umair Aijaz. “Globally, digital banking has already gained significant traction.”
This launch marks a significant development in Pakistan’s journey toward a more digitized and inclusive financial ecosystem.
