Abstract:
A Shariah-compliant Islamic bank is one that follows the rules and regulations ofthe Islamic
faith. Here, Riba-free and ethical transactions are conducted, and they actively participate in
the Islamic economy's objectives and aspirations. The main activity oftraditional banks is to
establish interest rates. From 2017 through 2021, this research analyses the performance of
Islamic and conventional banks in Pakistan. This study has examine and evaluate the
performance of Pakistan's Islamic (Meezan) and conventional (MCB) financial institutions
between 2017 and 2021. Considering that both types of banks are active in Pakistan and no
earlier study has focused on them, Pakistan was chosen as the study's primary focus.
According to this study, does an Islamic bank in Pakistan outperform the country's other
financial institutions? Financial parameters for liquidity, profitability, solvency, and activity
used to analyse the overall performance of the banks in both categories. Conventional
banks in Pakistan would be more profitable than Islamic ones from 2017 to 2021 according to
the research. Traditional Pakistani banks fall short in terms of liquidity, debt-to-asset ratios,
and asset turnover when compared to Islamic banks. Despite Islamic banking's strong
performance across a range of parameters, conventional banking in Pakistan is more efficient
between 2017 and 2021 than it is now
