The AlBaraka Forum held the 6th AlBaraka Forum Regional Conference on 19 & 20 January 2026 at the Pearl Continental Hotel, Karachi, under the theme “Islamic Economy in the Digital Age: Innovation within the Framework of Compliance”.

On this occasion, H.E. Mr. Yousef Hassan Khalawi, Secretary General of AlBaraka Forum for Islamic Economy, assured that Islamic finance now has the potential to be on the same stage as conventional banking, as both enter the digital age at the same moment, asking the question: “Will we follow the same trend for the last fifty years? No. From today, by entering this age, either you choose to be innovative, or again, you will be number two, always like before.”

In his address, H.E. Mr. Jameel Ahmad, Governor, State Bank of Pakistan, emphasized that digital innovation in Islamic finance must serve broader socioeconomic goals, including financial inclusion and equitable access, highlighting how technology can extend Sharia-compliant financial services to SMEs, farmers, and women entrepreneurs, while reducing costs and overcoming geographic barriers.

H.E. Mr. Muhammad Atif Hanif, Chief Executive Officer, Al Baraka Bank Pakistan, emphasized that digital innovation in Islamic banking must go beyond automation, focusing on developing truly Sharia-compliant products and services rather than replicating conventional banking models, ensuring authenticity, value creation, and sustainable growth.

H.E. Mr. Zafar Masud, Chairman, Pakistan Banks’ Associations, President and Chief Executive Officer, The Bank of Punjab, emphasized that Islamic banking is central to advancing financial inclusion, noting that when the right incentives are built into digital financial products, even those outside the formal system are willing to adopt technology.

Speakers also highlighted the rapid shift toward digital banking in Pakistan, noting that over 90% of retail transactions now take place through digital channels, with the majority via mobile platforms. He emphasized that adopting robust digital frameworks can help Islamic banks scale, enhance customer experience, and expand outreach nationwide.

Discussing the practical impact of AI in banking, Mr. Ashar Nazim, Founder and Chief Executive Officer, Aion Digital, explained how machine learning and data-driven models can transform risk assessment and unlock productive capital for business financing. He noted that embedding AI into live transactional data has the potential to drive efficiency, support economic growth, and create millions of jobs across the financial ecosystem.

H.E. Mufti Dr. Irshad Ahmad Aijaz, Chairman, Shari’ah Advisory Committee, State Bank of Pakistan, emphasized that strong Shari’ah governance, control, and audit are essential as Islamic finance adopts digital innovation, fintech, and digital assets, stressing that noble intentions must be matched with transparency, accountability, and robust regulatory oversight.

Prof. Azman bin Mohd Noor, Professor in Islamic Jurisprudence, Department of Fiqh and Usul al-Fiqh, International Islamic University Malaysia, highlighted how digital innovation and FinTech can significantly expand cash Waqf collection and impact.

Drawing on Malaysia’s experience, he emphasized that modern technologies, strong Shari’ah governance, and diverse investment instruments can preserve Waqf capital, generate sustainable returns, and enable broader community participation, even with small, accessible contributions.

H.E. Dr. Umar A. Oseni, Secretary General, The Organization of Islamic Cooperation Arbitration Centre, emphasized that rapid digital innovation in the Islamic economy requires regulatory frameworks to stay ahead of the curve, highlighting the challenges of cross-border transactions, regulatory fragmentation, and the need for unified Shari’ah governance, calling for cooperation, mutual recognition frameworks, and robust oversight to ensure transparency, compliance, and trust in digital Islamic finance.

Engr. Khanani focused on the redefinition of money in the digital age, exploring the foundations of tokenisation and cryptography, and examining the Shari’ah basis of tokenised money through the lens of Fiqh and Maqasid al-Shari’ah. He also discussed the emergence of tokenised Sukuk, new digital instruments and currencies, and their implications for the future of Islamic finance.

H.E. Mr. Faraz Khan MBE, Co-Founder & Partner, Spectreco, steered a deep discussion on sustainability, intergenerational wealth transfer, and ESG as a core investment and consumption driver for future generations.

Moderating the leadership talk “Embracing Regional Sustainable Future: Pakistan’s Leadership in Shari’ah Compliant ESG Indexing”, he highlighted how sustainability is becoming central to business succession, capital allocation, and trade finance, urging Pakistani institutions to align family businesses, exports, and climate strategies with emerging global ESG expectations.

During the institutional workshop on “Technicalities of Takaful in the Digital Revolution”, Mr. Nayyar Hussain, Senior Executive Director, Salaam Takaful Limited, highlighted how Digital Takaful is transforming the industry by replacing traditional processes with a fully digital, customer-first model. He explained how technology enables seamless policy issuance, contributions, and claims without physical documentation, making Takaful more efficient, transparent, and accessible for today’s digitally driven customers.

Mr. Nayyar Hussain, Senior Executive Director, Salaam Takaful Limited, emphasized the role of Digital Takaful innovation and financial inclusion during the workshop on Technicalities of Takaful in the Digital Revolution. He shared insights on how digital platforms help bridge the protection gap, lower operational costs, and support the development of inclusive, affordable Takaful products. The session showcased how digital innovation is reshaping the future of the Takaful industry in Pakistan.

Mr. Mochamad Nizar Mustaqim, General Director, Hijra Bank – Indonesia, emphasized that innovation enables Islamic economy institutions to play a stronger developmental role, particularly in supporting MSMEs and financially underserved communities. He discussed how technology-driven solutions help Islamic banks deliver accessible Shariah-compliant products, improve service delivery, and contribute to sustainable economic growth. The session highlighted the importance of building integrated digital ecosystems to enhance the long-term impact of Islamic finance.

During the workshop “Demographic Growth and Islamic Economic Expansion: New Horizons”, Dr. Eman Shady, Executive Secretary at the Strategic Thinking Center for Islamic Economy, explored how the rapid growth of the Muslim population creates new economic opportunities for Islamic finance, halal industries, and Shariah-compliant services. She highlighted the importance of understanding demographic trends to expand market size, stimulate investment, and support sustainable economic growth across both Muslim and non-Muslim majority countries.