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Mashreq Bank Pakistan is ramping up its digital banking ambitions with a new push to capture workers’ remittances and reshape how current accounts work in the country. The digital bank, one of only two operating in Pakistan, has introduced profit payments on current accounts for the first time while widening its focus on overseas Pakistanis.
At the launch of Mashreq NEO in Karachi on Monday, the bank announced profit rates of up to 5% per annum on current accounts. Shahzad Khokhar, Head of Islamic Banking at Mashreq Pakistan, said
“The new Shariah-compliant current account will offer a “market-first profit rate,” while Islamic savings accounts will deliver returns of up to 10%. He added that conventional variants will also provide competitive rates.”
The UAE-headquartered bank has invested a total of $100 million in Pakistan over the past two years and now positions itself as the country’s second-largest single foreign direct investor. Mashreq plans to serve 10 million Pakistanis within the next five years as part of its long-term expansion strategy.
A major part of that strategy centers on remittances. The bank aims to mobilize deposits by attracting overseas Pakistanis and then expand into lending for individuals and small and medium-sized enterprises. Lending is expected to begin in 2026.
“CEO Muhammad Hamayun Sajjad said Mashreq will use its global infrastructure to offer instant account opening for non-resident Pakistanis in the UAE. He noted that Mashreq UAE already serves almost 300,000 overseas Pakistanis who send money home.”
Sajjad highlighted strong remittance growth, saying inflows reached a record $38 billion in fiscal year 2024-25, up from around $28 billion two years earlier. He said remittances now contribute 10% to Pakistan’s GDP and remain a critical support for the economy.
Mashreq Bank Pakistan Chairman and Group Head of Retail Banking, Fernando Morillo, said the $100 million investment reflects the bank’s commitment to the market. He called it Mashreq’s most important investment in Pakistan in recent years.
Speaking to Business Recorder after the event, Sajjad said the bank intends to launch SME banking by mid-2026 and roll out consumer lending by December 2026. He added that plans are also underway to introduce cash-accepting ATMs across the country.
Mashreq Bank Pakistan began commercial operations in mid-September 2025 and is now accelerating efforts to expand its digital footprint while competing for a larger share of Pakistan’s fast-growing remittance-driven economy.
