HBL Microfinance Bank Opens First Islamic Banking Branch in Khyber Pakhtunkhwa

• HBL Microfinance Bank launches its first Islamic Banking branch in Timergara, Khyber Pakhtunkhwa, after receiving approval from the State Bank of Pakistan.
• The new branch will provide Shariah-compliant financial services to individuals, farmers, small business owners and underserved communities.
• The bank plans to expand its Islamic Banking operations across Pakistan to improve access to financial services.

HBL Microfinance Bank Limited (HBL MFB) has officially launched its Islamic Banking operations with the opening of its first dedicated Islamic Banking branch in Timergara, Khyber Pakhtunkhwa, marking an important development in its efforts to expand financial inclusion across Pakistan.

The inauguration follows the granting of an Islamic Banking licence by the State Bank of Pakistan (SBP), allowing the bank to introduce financial services based on Shariah principles.

Through the new branch, HBL Microfinance Bank aims to provide greater access to Islamic financial solutions for individuals, micro-entrepreneurs, farmers and communities seeking banking services that comply with their religious and financial preferences.

The initiative is particularly focused on underserved populations that have traditionally faced difficulties accessing formal banking facilities and affordable financial services.

The launch represents an expansion of the bank’s existing microfinance operations, offering customers additional choices while supporting small businesses, agricultural activities and local economic development.

Speaking at the inauguration, HBL Microfinance Bank President and Chief Executive Officer Amir Khan described the introduction of Islamic Banking as an important milestone in the institution’s commitment to making financial services more accessible and inclusive.

He said the bank was working to ensure that financial products and services responded to the needs of people across Pakistan, particularly those who required greater access to formal banking facilities.

According to Amir Khan, opening the first Islamic Banking branch in Timergara reflects the bank’s efforts to reach communities where financial services can make a meaningful difference to economic opportunities and everyday livelihoods.

He emphasised that the initiative would help bring more people into the formal banking system while enabling customers to pursue their financial goals with greater confidence.

The bank’s Islamic Banking services are intended to offer financial solutions structured around Shariah principles, providing an alternative for customers who prefer Islamic banking arrangements.

The expansion is expected to support financial participation among small-scale entrepreneurs, agricultural communities and individuals who may have previously remained outside the conventional banking system because of religious preferences or limited access to suitable products.

Established in 2002, HBL Microfinance Bank has developed an extensive presence in Pakistan’s microfinance sector, serving millions of customers and focusing on improving economic opportunities for financially underserved communities.

Over the years, the institution has worked to support individuals and small enterprises by providing financial services designed to encourage income generation, business development and economic participation.

The introduction of Islamic Banking builds on this existing mandate by extending the range of financial products available to customers and incorporating services aligned with Islamic financial principles.

The bank considers the new operation a natural progression of its broader mission to promote financial inclusion and provide practical financial support to communities across the country.

With the inauguration of the Timergara branch, HBL Microfinance Bank has begun a new phase of its operations and intends to gradually expand its Islamic Banking services to reach additional customers in other parts of Pakistan.

The institution plans to further strengthen its Islamic Banking network while continuing its existing efforts to support economic activity, improve access to financial services and promote sustainable growth among underserved communities.