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20.2.10

Case Study: Islamic Banking in Pakistan

Our previous country-specific piece focused on Jordan, here we include a recent thesis paper which takes a comparative approach to Islamic vs conventional banking in Pakistan. We are increasingly seeing this kind of approach, in this case the author takes the analytical road using a variety of statistical tests of significance for mutiple balance sheet metrics.
Muhammad Shehzad Moin
University of Skövde
August 2008

Abstract: "Islamic banking and finance in Pakistan started in 1977-78 with the elimination of
interest in compliance with the Principles of Islamic Shari’ah in Islamic banking practices. Since then, amendments in financial system to allow the issuance of new interest-free instrument of corporate financing, promulgation of ordinance to permit the establishment of Mudaraba companies and floatation of Mudaraba Certificates, constitution of Commission for Transformation of Financial System (CTFS), and the establishments of Islamic Banking Department by the State Bank of Pakistan are some of the key steps taken place by the governments."

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