Raqami Bank to Launch in Pakistan With $100m Investment Plan

https://www.bloomberg.com/news/articles/2026-01-22/raqami-bank-set-...


Pakistani financial firm Raqami Islamic Digital Bank plans to invest $100 million over the next five years as it gears up to start operations next month.

The Karachi-based lender, which is backed by the Kuwait Investment Authority sovereign wealth fund, has completed its pilot phase and will start commercial operations in February, according to Chief Executive Officer Umair Aijaz. The digital bank aims to attract at least a million customers within three years with a focus on small commercial lending.

“We are very excited to explore this opportunity of a digital bank in the small- and medium-sized enterprise space,” Aijaz said in an interview in Karachi Wednesday. “Globally, it has already picked up with a lot of traction.”

Pakistan is seeing a new wave in its financial sector after the central bank granted licenses to five new digital banks in 2023. The liberalization drive pits lenders with overseas backing, such as Telenor ASA’s Easy Paisa and the United Arab Emirates’ Mashreqbank PSC, which has already started operations, against local lenders Hugo Bank and Buraq Bank Pakistan. The lenders will initially operate under certain limitations but will be eligible to upgrade to a fully fledged digital bank license in three years that will allow them to do corporate banking.

Raqami intends to invest most of the planned $100 million in people, technology and information security. It has already spent 8 billion rupees ($28.6 million) to bring it to the launch phase. The bank will focus on lending to small- and medium-sized enterprises, independent entrepreneurs and others segments that find it difficult to get loans, said Aijaz. The bank plans to break even in four years.

Kuwait’s sovereign wealth fund owns a stake in one of Pakistan’s largest lenders, Meezan Bank Ltd. and Raqami through Pakistan Kuwait Investment Co.

73% of foreign firms in Pakistan see it as a viable investment destination — survey

OICCI survey highlights improved investor optimism since 2023, when it stood at 61%
Regulatory unpredictability, high costs continue to keep foreign investors cautious

https://www.arabnews.com/node/2630395/pakistan

ISLAMABAD: Seventy-three percent of overseas investors operating in Pakistan now recommend the country as a viable destination for direct investment, up from 61% in 2023, according to a survey of more than 200 multinational companies released on Friday, signaling a measurable improvement in investor sentiment following Pakistan’s 2022–23 foreign exchange crisis.

The 2025 Perception and Investment Survey, conducted by the Overseas Investors Chamber of Commerce and Industry (OICCI), which represents multinational firms in the country, found that improving macroeconomic indicators and recent policy reforms have begun to restore confidence, though investors remain cautious about regulatory unpredictability and rising business costs.

“The 2025 Perception and Investment Survey ... provides a cautiously optimistic snapshot of investor sentiment in

Pakistan,” the report said, noting that “improvements in macroeconomic indicators and recent policy reform initiatives have begun to rebuild confidence among foreign investors.”

The survey pointed to relative exchange-rate stability after a period of steep rupee depreciation, alongside credit rating upgrades by international agencies.

“73% of OICCI members now recommend Pakistan as a viable FDI destination, compared to 61 percent two years earlier,” it added.

Despite the improved macro picture, the survey warned that structural and regulatory challenges continue to weigh on investment decisions.

“The broader regulatory landscape remains complex and unpredictable,” it said, highlighting delays in tax refunds, inconsistent enforcement and weak coordination between federal and provincial authorities.

Foreign direct investment, while showing some positive movement, “remains concentrated in cautious brackets,” with most investors opting for modest commitments despite a decline in the proportion of firms planning no future investment.

Rising costs were a major concern, with nearly all respondents reporting increases in energy prices, wages and raw material costs. Political instability, sudden regulatory changes and an unclear fiscal roadmap were listed among the top investor apprehensions.

The survey warned that despite the positive outlook among multinationals operating in Pakistan, international perception of the country has improved only marginally, adding that “negative global coverage continues to influence investment decisions significantly,” and underscoring the need for a more proactive international communication strategy.