Abstract:
Islamic banks operate under the law of Sharia, the Islamic legal code and they have to
find ways to grow and improve performance and compete in an economic
environment that is structured in such a way to compete with the conventional banking
with in Pakistan. This research finds the reasons through comparative analysis for of
performance of Islamic banking in Pakistan with conventional banking. It provides the
details about efficiency of Islamic banking in Pakistan and investigation with the
conventional banking. the empirical evidence that the Islamic banking industry in the
country is profitable, robust, efficient and continuously rising because of higher
efficiency levels and the operations type within the country that really create the
favorable environment that support financial openness for Islamic banking. To look at
all these things we have done the ratio analysis of the Islamic banking and conventional
banking and compare that with each other to have knowledge about which type of the
bank is more profitable and performing better after a great recession and financial crisis
and what are the circumstances that increased the efficiency of the banks. What are the
factors to success of Islamic banking and how the external variables changed the
conditions for both conventional as well as Islamic banking.
