Business finance in Islam

A question raised following Pakistan's decision to Islamize the economy was that of how business would be financed without interest. The reason for uncertainty regarding Islamic finance is that, for a long time, there has been a lack of concern for examining the economics of Islam. Scholars have been devising their own methods to deal with economic issues. Some nawabs owed large sums to Hindu lenders, and bankers have been known to be influential in the royal courts. With a lack of Muslim banks, the conventional banking system was imposed. Muslim leaders saw interest as permissible in light of the investments being made. Others were careful and suggested that Muslims give away interest payments charitably. Some scholars declared bank interest to be permissible. The pre-prophetic life of Muhammad contained business ventures of three sorts--individual efforts, working as an agent and selling for a fee and commission, and trading in a partnership with profit-sharing. Islamic law