JAKARTA – In a historic development for Islamic finance, Pakistan’s Securities and Exchange Commission (SECP) has granted full Shariah compliance certification to Walee Financial Services Limited, marking a significant milestone in the country’s digital financial landscape.

A Watershed Moment for Islamic Fintech

On October 24, 2025, Walee Financial Services achieved what no other company in Pakistan had accomplished before—becoming the nation’s first completely Shariah-compliant Non-Banking Financial Company (NBFC) operating in the digital nano-financing sector. This certification represents more than just regulatory approval; it signals a transformative shift toward accessible, faith-based financial services for Pakistan’s predominantly Muslim population.

The Journey Toward Ethical Finance

Pakistan has long aspired to align its financial systems with Islamic principles that emphasize fairness, risk-sharing, and the prohibition of riba (interest-based transactions). Despite having a 96% Muslim population, conventional banking systems dominated the landscape for decades, creating a disconnect between people’s financial needs and their religious values.

The momentum for change accelerated in 2022 when the Federal Shariat Court mandated Pakistan to transition toward a riba-free economy by January 1, 2028. This directive pushed regulatory bodies like the SECP and State Bank of Pakistan to reimagine financial services from the ground up.

Walee’s Innovative Approach

Walee Financial Services, operating under Walee Technologies Pvt. Ltd., entered the market in 2021 as a digital wallet provider. The company gained significant traction with Hakeem, Pakistan’s pioneering Islamic nano-financing application launched in late 2024.

Supported by prominent investors including Sarmayacar and Fatima Gobi Ventures, Hakeem has attracted millions of users by providing small, interest-free loans for everyday expenses—from educational costs to business inventory replenishment.

The platform utilizes an unorganized Tawarruq model, a Shariah-approved framework where users engage in commodity transactions (such as mobile airtime) to access funds ethically, completely avoiding interest-based lending. This approach combines transparency with user-friendly technology, making it accessible to both urban and rural populations.

What Full Compliance Means

The SECP certification validates Walee’s entire operation—including remittances, micro-loans, and savings accounts—as fully Shariah-compliant. This approval followed comprehensive audits by the SECP’s Shariah Board, ensuring adherence to Islamic principles such as fairness and the prohibition of exploitation.

Mufti Usama Ehsan, Walee’s Shariah Advisor, described the certification as a proud advancement for Pakistan’s Islamic finance sector, emphasizing the Tawarruq model’s innovative nature. Dr. Rashid Mansoor, Head of Shariah, noted that the platform successfully merges modern technology with religious scholarship to deliver meaningful social benefits.

For users, this certification provides assurance that their financial activities are not only convenient but also spiritually sound, meeting the core objectives of Islamic law including wealth preservation and equitable practices.

Services Offered

Under the SECP’s Shariah Governance Regulations of 2023, Walee maintains a dedicated Shariah board and conducts regular reviews to ensure ongoing compliance. The platform offers:

• Utility bill payments
• Remittance services (crucial for Pakistan’s $30 billion annual inflow from overseas workers)
• Small-scale borrowing through profit-sharing models
• Savings accounts using trade-based structures like murabaha (cost-plus financing)

With approximately 40% of Pakistan’s population lacking access to traditional banking services, Walee’s mobile-based platform extends financial inclusion to underserved communities across the country.

Empowering Women Entrepreneurs

Just one day before receiving SECP certification, Walee partnered with Karandaaz Pakistan on October 23 to introduce “Khudmukhtar Khatoon,” Pakistan’s first Shariah-compliant digital asset-financing program specifically designed for women entrepreneurs.

Targeting sectors like textiles and agriculture, this initiative provides interest-free loans starting at PKR 50,000 for equipment and inventory purchases. CEO Noshad Minhas positioned the program as a dignified empowerment tool, while Karandaaz’s Sharjeel Murtaza highlighted its potential to address systemic financial gaps.

With women-led enterprises contributing merely 3% to Pakistan’s GDP despite a 22-million-strong female workforce, this program could catalyze substantial economic growth.

Market Context and Growth Potential

Walee’s certification aligns perfectly with Pakistan’s expanding Islamic finance sector, valued at over PKR 7 trillion ($25 billion) and experiencing 20% annual growth as of 2024. Recent regulatory updates in April 2025 strengthened standards for Shariah-compliant investment schemes, establishing Walee as an industry leader.

The company’s success also resonates within the global Islamic finance market, currently valued at $3.5 trillion and projected to reach $4 trillion by 2028. Pakistan’s vibrant fintech ecosystem, comprising over 1,000 startups, could potentially export similar models to markets like Indonesia and the United Arab Emirates, where demand for interest-free financial solutions continues to surge.

Real-World Impact

Early users have shared compelling testimonials: shop owners in Lahore using Hakeem to purchase inventory without falling into debt cycles, and mothers in Faisalabad covering educational expenses during Ramadan without the moral burden of interest-based borrowing. These transactions represent more than financial exchanges—they’re lifelines that honor faith while addressing practical challenges.

Looking Ahead

Walee Financial Services’ certification demonstrates that religious principles and technological innovation can work in harmony, providing not just financial access but dignity and opportunity. As Pakistan progresses toward its 2028 goal of a riba-free economy, this achievement invites individuals to participate in a movement where Halal living extends beyond dietary choices to encompass financial decisions.

For Pakistani users, the path forward is clear: download the Walee app, complete CNIC verification, and explore Hakeem’s offerings. Women entrepreneurs should watch for Khudmukhtar Khatoon application opportunities. Globally, consumers can demand Shariah-compliant options, verify certifications through official registers, and consult religious scholars for guidance.

This milestone proves that ethical finance isn’t just an aspiration—it’s an achievable reality that can transform lives while honoring Islamic values.

Original Article:

Halal Times. (2025, October 28). SECP Approves Walee Financial Services as Fully Shariah Compliant NBFC. Retrieved from https://www.halaltimes.com/secp-approves-walee-financial-services-as-fully-shariah-compliant-nbfc/