Pakistan to adopt dual banking system

After conducting an extensive tour of the Islamic financial institutions of various foreign countries, a Pakistani delegation suggested that Pakistan follow the example of Malaysia, Egypt and Saudi Arabia. In following that example, Pakistan would be adopting a dual and parallel banking system -comprised of both Islamic and conventional banks. The delegation suggested this after considering a number of weaknesses impeding Pakistan's current banking system. The introduction of an Islamic banking system is a long process requiring devolopment of a legal and regulatory framework, instutions, markets, and efficient and appropriate practices -in addition, the process requires constant monitoring and fine-tuning. Since government financial transactions make up a large part of the financial system of the country, the development of instruments of government financing and restructing the national/public debt on a shari`a-compliant basis is the main challenge facing the Pakistani financial