Dubai, UAE: AlHuda Center of Islamic Banking and Economics (AlHuda CIBE), a leading Islamic finance consultancy and advisory institution, has been formally engaged by Punjab Provincial Cooperative Bank Limited (PPCBL) to provide consultancy and advisory services for the conversion of the Bank’s conventional banking operations into Shariah-compliant Islamic banking operations.

The consultancy engagement was formalized through the signing of an agreement between Mr. Muhammad Zubair, Chief Executive Officer of AlHuda CIBE, and Mr. Shahraam Raza Bakhtari, President of Punjab Provincial Cooperative Bank Limited. The engagement marks an important step in PPCBL’s strategic journey toward Islamic banking.

Under this engagement, AlHuda CIBE will provide comprehensive advisory support covering the design and implementation of a Shariah governance, development of Islamic banking products, preparation of operational policies and manuals, regulatory alignment, and structured staff training and capacity-building programs to ensure a smooth and compliant transition.

Commenting on the engagement, Mr. Muhammad Zubair, CEO of AlHuda CIBE, stated that AlHuda CIBE is committed to serving the Islamic banking and finance industry and supporting financial institutions in their transition toward Shariah-compliant operations. He noted that PPCBL’s cooperative banking structure presents a unique opportunity to extend Islamic banking services to a wider segment of society. He expressed confidence that, with a well-planned and disciplined approach, PPCBL will successfully migrate toward Islamic banking operations.

Mr. Shahraam Raza Bakhtari, President of PPCBL, stated that the Bank has engaged AlHuda CIBE to support a gradual and structured transformation process. He emphasized that a key focus of this initiative will be strengthening staff capacity and institutional readiness so that Islamic banking is implemented in its true spirit. He reaffirmed the Bank’s commitment to completing the transition within the agreed timeframe, with the objective of becoming a fully-fledged Islamic bank.

Islamic banking in Pakistan continues to gain momentum, supported by a strong policy direction from the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP). Both regulators have introduced wide-ranging initiatives aimed at promoting a Shariah-compliant and interest-free financial system. These include the enhancement of Shariah governance, expansion of Islamic banking market share, development of Shariah-compliant liquidity management instruments such as Sukuk, and promotion of Islamic capital market and Takaful sectors. These measures align with constitutional and judicial directives to transform Pakistan’s economy in accordance with Islamic principles.

Islamic banking and finance promot transparent, and inclusive financial intermediation by emphasizing risk-sharing, asset-backed transactions, and real economic activity. By prohibiting interest (Riba) and excessive uncertainty (Gharar), Islamic finance enhances financial stability and supports sustainable economic development. These features make Islamic banking particularly relevant for cooperative and community-based financial institutions such as PPCBL.

The engagement of AlHuda CIBE as a consulting advisor reflects PPCBL’s commitment to aligning with national regulatory objectives and contributing to Pakistan’s broader transition toward a Shariah-compliant financial system before 2028. The initiative is expected to serve as a reference model for other banks considering conversion to Islamic banking operations.

About AlHuda CIBE:

AlHuda Center of Islamic Banking and Economics (CIBE) is a well-recognized name in Islamic banking and finance industry for research and provide state-of-the-art Advisory Consultancy and Education through various well-recognized modes viz. Islamic Financial Product Development, Shariah Advisory, Trainings Workshops, and Islamic Microfinance and Takaful Consultancies etc. side by side through our distinguished, generally acceptable and known Publications in Islamic Banking and Finance.

We are dedicated to serving the community as a unique institution, advisory and capacity building for the last twelve years. The prime goal has always been to remain stick to the commitments providing Services not only in UAE/Pakistan but all over the world. We have so far served in more than 35 Countries for the development of Islamic Banking and Finance industry. For further Details about AlHuda CIBE, please visit: www.alhudacibe.com

For Media Contact:
Ms. Shaguftta Perveen
Manager Communications,
info@alhudacibe.com