Client Name

Meezan Bank

Faculty Advisor

Dr. Mohsin Zahid Khawaja

SBS Thought Leadership Areas

Islamic Business and Finance

SBS Thought Leadership Area Justification

This project directly aligns with IBA's "Islamic Business and Finance" thought leadership, which focuses on research, education, and policy dialogue in Islamic finance. It contributes to this tradition by exploring how fintech, specifically blockchain, intersects with Shariah-compliant finance. The project offers both theoretical insights and practical frameworks for implementation , merging academic theory with practical application to produce an implementable model that balances Shariah compliance with digital innovation. This work introduces a novel use-case of blockchain within Pakistan's Islamic capital market , and its outcomes are expected to influence policy recommendations and future regulatory frameworks, reinforcing IBA’s reputation as a pioneer in fintech and Islamic finance.

Aligned SDGs

GOAL 10: Reduced Inequality

Aligned SDGs Justification

A central objective of this project is to significantly reduce financial inequalities by boosting financial inclusion, especially for the underserved retail segment. Recognizing that 85% of Pakistan's population remains outside formal banking channels, the project champions how "blockchain has the potential to boost financial inclusion by enabling individuals without traditional bank accounts to access the global capital market via their smartphones." The practical example here is the project's mobile-first platform design, enabling investment in smaller denominations, which directly targets a new generation of investors. This approach empowers individuals with limited capital, potentially even those in rural areas with smartphone access (given Pakistan's 145 million mobile connections), to participate in instruments like Sukuk that finance national infrastructure projects, thereby democratizing access to capital markets and fostering more equitable wealth distribution.

NDA

No

Abstract

This Experiential Learning Project, conducted with Meezan Bank, Pakistan's leading Islamic bank, aimed to tackle the inefficiencies in the country's Sukuk issuance by exploring blockchain and smart contracts. Our primary goal was to design a practical, Shariah-compliant blockchain-based Smart Ijarah Sukuk model that resolves existing operational bottlenecks. We approached this with a qualitative, descriptive-analytical research design, focusing on Meezan Bank as a case study and drawing insights from global examples like Malaysia's Sukuk market. Data was gathered through a comprehensive review of existing literature and key interviews with Meezan Bank's marketing team. A significant outcome of this project is the conceptual model and a functional prototype for a Blockchain-Based Retail Sukuk Platform. This prototype clearly shows how a secure blockchain system can streamline the entire Sukuk process, from a much-improved investor onboarding, complete with biometric verification and automated checks, to the seamless automation of key transactional steps through a master smart contract. Such digitization promises faster, more transparent operations, lower costs, and reduced reliance on intermediaries, directly addressing the core issues in traditional Sukuk issuance and helping manage surplus liquidity for Islamic banks. This initiative strongly supports the United Nations Sustainable Development Goals, particularly SDG 8, 9, 10, and 16, by fostering financial innovation and inclusive economic growth. It also fits well within IBA's "Islamic Business and Finance" thought leadership area, bringing together fintech and Shariah-compliant finance. The main takeaway is that pioneering this platform could position Meezan Bank as an innovative market leader and significantly boost financial inclusion. While regulatory clarity in Pakistan remains a challenge, we recommend Meezan Bank pursue a phased pilot program, lead a regulatory FinTech consortium, and focus on financial inclusion for retail investors through a mobile- first strategy.

Document Type

Restricted Access

Document Name for Citation

Experiential Learning Project

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