All About Islamic Banking Field in Pakistan

All About Islamic Banking Field in Pakistan

All About Islamic Banking Field in Pakistan

Here you will know all about Islamic banking field in Pakistan. This Islamic banking which has gained all progress in our country Pakistan, it has turned out to be the fifth biggest and also largest market. This concept usually and mainly works on the interest fee loan scheme basis.

History and Facts on Islamic Banking

  • It is in the year of 2002 that this concept of Islamic banking was introduced for the first time in Pakistan. This mechanism contributes up to the range of 11.9% in Pakistan. There are 21 institutions which are operating on the concept of Islamic banking.
  • In Pakistan, we have 5 pure Islamic banks, rest of the banks too work and operate themselves on the commercial basis. 2368 are the total branches of Islamic banking we have in Pakistan.

All About Islamic Banking Field in Pakistan in Urdu

"All About Islamic Banking Field in Pakistan"

Framework Policy Adopted by Islamic Banking

  • It is on banking companies ordinance 1962 that every single Islamic bank operate and work in Pakistan. This framework policy is designed by the State bank of Pakistan. This is a sort of banking system which is all in consonance and in relation with the Islamic spirit and Islamic value system. This system work on the principles which are mainly laid down and put forward by Islamic Shariah. This Islamic banking has now gained a broader scope and also a broader one meaning. It has convinced people to come out from the transformation mode of using conventional money lending system.
  • This banking activity is completely consistent with the aims and principles of Shariah. This concept has acquired a practical application and now this system is gaining rapid prominence in the area of Islamic economics. Its baking principles all emphasize on the moral and ethical values.
  • You can also call this Islamic banking system as non-interest banking. You can say that there are two fundamental principles which are followed in this Islamic banking system and they are sharing of profit and loss and the second fundamental principle is the prohibition and cancellation of interest amounts.

Difference Between The Concept of Islamic Banking System and Commercial Banking Systems

  • Both of these banking systems are way far different from each other. In this Islamic banking system, we combine the factors of faith and finance so that real and actual money needs can be served. On the other hand, in this commercial banking system, no such purpose is seen or served.
  • So far we have seen no standard way which can define and explain the concept of Islamic banking. But if we are going to speak on the broader terms then we can say that an Islamic bank is an institution which mobilizes all of the financial resources and then invest them so that islamically -acceptable kind of social objectives and financial objectives can be achieved. If more working mechanisms will be implemented and initiated in this institution, we will let you know.

Stay tuned.


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