The Bank of Khyber (PSX: BOK) has announced plans to transition from a conventional bank to a full-fledged Islamic bank, aiming to capitalize on the growing demand for Shariah-compliant banking in Pakistan. The announcement was made in a stock filing by the bank on Thursday.

“The Bank has initiated the process for conversion from Conventional to Islamic Bank,” the filing stated, signaling a strategic shift to align with the increasing acceptability of Islamic banking across the country.

Established under the Bank of Khyber Act, 1991, the bank is primarily engaged in commercial banking and related services. It acquired the status of a scheduled bank in 1994 and has since been operating as a conventional bank.

The move to Islamic banking reflects the bank’s efforts to adapt to market trends and cater to the growing preference for Shariah-compliant financial services in Pakistan. Further details about the conversion process are expected to be shared in the coming months.