Saudi Arabian fintech giant barq has secured In-Principle Approval (IPA) from the State Bank of Pakistan (SBP) to set up an Electronic Money Institution (EMI) in the country. The approval, granted on October 10, 2025, marks a significant step in barq’s expansion into Pakistan’s rapidly growing digital financial services market.
barq, known as the fastest-growing wallet in Saudi Arabia, surpassed STC Pay earlier this year. By July 2025, it had over 7 million users across 150 nationalities.
Barq Regulatory Milestone and Next Steps
The IPA represents SBP’s initial regulatory clearance, covering barq’s business model, ownership structure, security standards, and compliance mechanisms.
According to SBP guidelines, barq must meet additional conditions and complete a pilot phase before applying for Commercial Approval. Once licensed, the company plans to offer a full suite of digital financial services. This includes e-wallets, mobile payments, and other fintech solutions, fully aligned with SBP regulations and international standards.
Tapping Into Pakistan’s Fintech Momentum
Pakistan’s digital payments ecosystem has grown rapidly in recent years. Still, there is a lot of room for fintech companies to invest in Pakistan as local services are somewhat unsatisfactory, to say the very least. SBP has been actively encouraging fintech innovation to drive financial inclusion and reduce reliance on cash.
Dr. Zain Farooq, Managing Director of barq Pakistan, is leading the company’s local entry. barq entered the Pakistani market through the acquisition of the Saudi, Pakistani, and UAE subsidiaries of MyTM, a fintech co-founded by Dr. Farooq.
By entering Pakistan, barq aims to replicate its Saudi success and support the country’s transition toward a cashless economy.