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Islamic Jbanking
Islamic Banking in Pakistan

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ISLAMIC BANKING IN PAKISTAN

Islamic Banking in Pakistan: A Review of Conventional and Islamic Banking Prof. Dr. Khawaja Amjad Saeed Hailey College of Banking and Finance University of the Punjab, Lahore

Proceedings of 2nd International Conference on Business Management (ISBN: 978-969-9368-06-6)

Islamic Banking in Pakistan

2

Terminology IBIs ND NIB NPFs P PP PTC ROA ROE SBP SME TFC Islamic Banking Institutions. No Date Non – Interest Based Banking. Non – Performing Finance Page. Pages Participation Term Certificate Return on Assets. Return on Equity. State Bank of Pakistan. Small & Medium Enterprises. Term Finance Certificate

Prelude The rise of Islamic Banking is a welcome sign. However, at present, conventional banking and Islamic Banking (IBIs) are operating on a parallel basis in Pakistan. This piece examines some interesting aspects for analysis of Conventional Banks and IBIs.

Proceedings of 2nd International Conference on Business Management (ISBN: 978-969-9368-06-6)

Islamic Banking in Pakistan

3

Constituents This piece consists of the following parts: Part Focus

----------------------------------------------------------------------------------------------------I II III IV Quranic Guidance and 1973 Constitution of Pakistan. Historical Rundown and Developments For IBIs In Pakistan. Growth, Development & Performance of IBIs in Pakistan. Conclusion & Recommendations For Future Growth

-----------------------------------------------------------------------------------------------------The above aspects are now explained below. The data were extracted from Islamic Banking Bulletin released by the Islamic Banking Department of SBP in June 2011. Part I: Quranic Guidance and 1973 Constitution Of Pakistan Quran and Elimination of Interest Allah has forbidden taking interest and has guided everyone to do business, trade and profession. In this respect, based on our research, some Quranic Verses are


Bibliography: 1. Al Quran: The Quran (English Meanings) published by Abul Qasim Publishing House 1997, Saudi Al-Muntada Al-Islamic, 2004. 2. Book Saeed, Khawaja Amjad Economy of Pakistan, Karachi: Oxford University Press, 2011 edition. 3. Magazines/Newspapers a. Kazmi Shabbir H, Stellar Performance of Islamic Banking, “Pakistan & Gulf Economist, Karachi”, December 26, 2011-January 01, 2012, P. 12. b. Baig Shujat Ali, Islamic Finance Industry: Past, Present and Future, “Pakistan & Gulf Economist, Karachi” November 07-20, 2011, PP 37-38. c. Saeed, Khawaja Amjad, Islamic Banking Inretrospect: Progress & Review Part-I “Business Recorder, Karachi” November 17, 2010. Proceedings of 2nd International Conference on Business Management (ISBN: 978-969-9368-06-6) Islamic Banking in Pakistan 28 d. Saeed, Khawaja Amjad, Islamic Banking Quantitative Analysis Part II, “Business Recorder” Karachi, November 20, 2010 4. Publications SBP: Annual Report 2010-11 Karachi, December 2011. SBP: Islamic Banking Bulletin, Karachi: State Bank of Pakistan, June 2011. SBP: Islamic Finance: Opportunities and Challenges, Karachi SBP: A Collection of speeches by Governor SBP from 2006-2008, pp 1-37. SBP: Strategic Plan for Islamic Banking Industry of Pakistan, Karachi: Islamic Banking Department, N.D-pp 1-57. SBP: Risk Management Guidelines for Islamic Banking Institutions, Karachi: Islamic Banking Department, January 02, 2008, pp 1-190. Proceedings of 2nd International Conference on Business Management (ISBN: 978-969-9368-06-6)
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