Moving toward an Islamic financial regime in Pakistan

The development of Islamic banking principles in Pakistan has been an ongoing process since gaining independence in 1947, a process greater accelerated in recent years. This book provides an account of the historical developments of law in Pakistan as it pertains to shari`a and Islamic finance. The Federal Shariat Court ruled in 1992 that riba be prohibited, a ruling that after seven years of appeals became law in a 1999 historic judgement by the Shariat Appellate Branch. The challenges facing Pakistan's shift to an interest-free banking system are discussed, including how contracts existing before the change should be handled, the effects on foreign private investment, and the future role of Islamic financial instruments.