IMPACT OF ISLAMIC BANKING IN THE GROWTH OF PAKISTAN ECONOMY

Abstract

Purpose The purpose of this research is to analyze the potential of Islamic Banking and how it is contributing in the economic growth of Pakistan and how Shariah compliancy and riba free banking are playing role in the shift towards growth of Islamic banks. Methodology The focus is on the potential of Islamic banking in economic growth of Pakistan , so It has been decided to conduct interviews and prepared a questionnaire along with graphs and also used tables to support my research and findings . However, it is pertinent to mention that my research is secondary data dominant. Findings After conducting the research on the finding, the research suggests that due prohibition of Gharar and Riba and due to shariah compliance, the overall Islamic Banking has developed and is appearing that the banking is on right track and will grow at a good pace as it is growing. Figures themselves are witness of the growth of banking side itself. Practical Implications The finding will definitely going to support the Government of Pakistan for economic growth, Islamic investors, policy and decision makers and never the less the potential customers of Islamic Banks.