Pre-requisites and consequences of Islamization of banking in Pakistan

The author, senior vice president of United Bank Limited, addresses the need for certain fundamental changes in a society before it is ready for the adoption of Islamic banking. His particular focus is on Pakistan and its culture, for Pakistan has been moving towards an Islamic system. The author expresses concern that materialism is being served by banks that emphasize the profits to be made in Islamic banking. An outline of the key principles of Capitalism, of Socialism, and of Islam in regards to economic life is presented by means of contrasting the three systems. Capitalism is individualistic and the most skillful at deriving utility deserve the largest share of wealth. Socialism is grounded in class warfare and wealth is born out of exploitation. Islam has a sense of obligation and wealth is seen as a test from Allah. In his section on Islam, the author includes a discussion of the concept of history. Guidelines of production are described and the consequences of Islami