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Islamic Banking in Pakistan

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Islamic Banking in Pakistan
Islamic Banking: Problems and Prospects | |
|Islamic Banking |
|Before I discuss about the problems and prospects of Islamic Banking, I am discussing some primary issues such as definition, |
|objective and history of modern Islamic banking. |
|Definition: |
|An Islamic Banking is a financial institution that operates with the objective to implement and materialise the economic and |
|financial principles of Islam in the banking arena. |
|The Organisation of Islamic conference (OIC) defined an Islamic Bank as “ a financial institution whose statutes, rules and |
|procedures expressly state its commitment to the principles of Islamic Shariah and to the banning of the receipt and payment of |
|interest on any of its operations.” |
|According to Islami Banking Act 1983 of Malaysia, an Islamic Bank is a “company which carries on Islamic Banking business....... |
|Islamic Banking business means banking business whose aims and operations do not involve any element which is not approved by the|
|religion Islam.” |
|Objectives: |
|The objective of Islamic Banking is not only to earn profit, but to do good and bring welfare to the people, Islam upholds the |
|concept that money, income and property belong to Allah and this wealth is to be used for
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