Islamic banking in Pakistan (M.A. Thesis)

This study is focused on Islamisation of banking in Pakistan, which introduced interest-free banking in 1981 and has gradually shifted from traditional banking since then. Under the Islamic economic system, Islamic banking follows the Qur'anic principle of 'Al-Adl' which brings higher prosperity and welfare in society. The new system abolishes the interest rate from the economy and encourages a business partnership, shirka, on a profit and loss basis. The author makes efforts to detail the nature of the Islamic economic system and present the state of affairs of the Islamic banking system of Pakistan. Statistical analysis of Islamic banking in Pakistan is provided to document support for the argument that the Islamic economic system may be the only viable alternative to the world.