Provincial Government Bank

Bank of Khyber Islamic Banking (Raast)

Part of PakFinHub's BOK coverage — see the full bank overview.

• Shariah-Compliant
• Full-Conversion in Progress

Written & reviewed by Dildar Hussain — 10+ years in Pakistani banking, BS Banking & Finance (NUML University)

Bank of Khyber Islamic banking operates under the brand name Raast, and represents the direction the entire bank is moving: BOK has been converting its conventional branches to Islamic banking over time, with the goal of becoming a fully Shariah-compliant institution. This page covers what Raast actually offers today.

What "Raast" Means at BOK

Raast Islamic Banking is BOK's dedicated brand for Shariah-compliant products. The transition is further along than "parallel operations" suggests for consumer lending specifically: BOK's own product pages state that consumer loans under the conventional mode have been discontinued, so products like Suhana Ghar (home), Foree Car (auto), and Salary Sahara (personal) are now accessed through Raast rather than as conventional loans. Conventional deposit accounts and some business/agri lending remain active in parallel — the discontinuation is confirmed specifically for consumer finance, not the whole conventional book. Deposits under Raast are structured on Islamic contracts such as Mudarabah (profit-and-loss sharing), not conventional fixed-interest arrangements, and financing products are structured on contracts like Murabaha or Ijarah instead of a conventional markup loan.

Brand name and transition confirmed from BOK's official Islamic Banking Group pages (bok.com.pk). Last verified: August 2026.

Raast Current & Savings Accounts

BOK's Islamic deposit catalog under Raast is significantly larger than a single "Islamic savings account" — it runs to roughly a dozen named products split across current, savings, and remittance-linked accounts, several with no conventional equivalent at all.

Product names confirmed from BOK's official Islamic Banking / Personal Banking deposit-account navigation (bok.com.pk). Last verified: August 2026.

Raast Term Deposits

Raast Consumer Financing

A detail worth flagging for comparison purposes: BOK offers two structurally different Islamic car-financing contracts side by side, not one — Raast Car Diminishing Musharakah (a joint-ownership structure where your equity share grows with each payment) and Raast Car Ijarah (a lease-based structure). They are not interchangeable names for the same product, and the right one depends on how you want ownership and payments structured.

Product names and contract types confirmed from BOK's official Islamic Banking / Consumer Finance navigation (bok.com.pk). Last verified: August 2026.

Shariah Governance

Raast products are overseen by BOK's own Shariah Board, which as of the bank's most recent quarterly filing comprises Mufti Muhammad Zahid (Chairman, Shariah Board), Mufti Muhammad Arif Khan and Mufti Abdul Wahab (Members), and Qazi Abdul Samad (Resident Shariah Board Member). This is a named, standing board — not a one-time sign-off — and its role includes reviewing the Mudarabah profit-distribution methodology and approving new Raast product structures, as required by the State Bank of Pakistan for all Islamic banking operations in Pakistan.

Shariah Board composition confirmed from BOK's Q1 2026 Corporate Information disclosure, filed with the Pakistan Stock Exchange. Last verified: August 2026.

Islamic vs. Conventional: What Actually Differs

The practical difference for a depositor comes down to the underlying contract. A conventional BOK savings account pays a fixed or floating interest rate set by the bank. A Raast Islamic savings account instead shares actual profit generated by the bank's Shariah-compliant investment pool, reviewed and approved by BOK's Shariah Board — the payout varies period to period based on real performance, unlike a guaranteed rate. For financing, a conventional car or home loan charges interest on the outstanding balance; a Raast Murabaha-based facility instead sells you the asset at a pre-agreed markup built into the price upfront, structured to avoid interest in the conventional sense.

Is a Raast Account Right for You?

If Shariah compliance is a requirement, not a preference, Raast is the only BOK route that fits — conventional accounts, whatever their features, don't meet that bar. If you're indifferent between the two and mainly comparing returns, check both the conventional profit rate and the Raast Mudarabah payout at the time you're opening an account. Which one performs better can shift with the bank's own investment results in a given period, unlike a conventional rate that's fixed in advance.

Frequently Asked Questions

As BOK Islamic Banking continues expanding under the Raast brand, more conventional product equivalents are expected to gain Shariah-compliant counterparts over time — worth checking back with BOK periodically if a specific product you need isn't yet available under Raast.

Good For

• Understanding what BOK's Raast Islamic banking brand actually covers
• Comparing Islamic vs. conventional account structures at BOK
• Knowing how Islamic financing contracts differ from conventional loans
• Deciding whether a Raast account fits your requirements

Similar Banks

More on Bank of Khyber