Growth of Islamic Banking in Pakistan
Khakan Najaf and Rabia Najaf*
Department of Accounting and Finance, University of Lahore, Islamabad Campus, Pakistan
- *Corresponding Author:
- Rabia Najaf
Department of Accounting and Finance
University of Lahore, Islamabad Campus, Pakistan
Tel: +92 42 111 865 865
E-mail: [email protected]
Received date March 10, 2016; Accepted date April 14, 2016; Published date April 22, 2016
Citation: Najaf K, Najaf R (2016) Growth of Islamic Banking in Pakistan. Arabian J Bus Manag Review 6:231.
Copyright: ©2016 Najaf K, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
Our founder Quaid-e-Azam was very much interested in the Islamic banking in our country. The prime objective of state bank is to remove interest system from the Pakistan. In 1970s Islamic banking was not famous, but at the start of twenty century it is very common in all over the world. Islamic banking is account value approximately USD 500 billion. It is growing with the ratio of 11-15%. Islamic banking is flourishing dynamically in also Pakistan like other countries, since January, 1981 it is very famous in Pakistan. All over the world financial stability has a crucial role. From the last 30 years Islamic banking has scope in the world. At this time, there are almost 200 Islamic banks which are providing the Shariah compliant. We analyzed the strength of Islamic banks with the help of AID model. Our results have shown that Islamic banking is the milestone for the future Islamic banking. In this paper, we have taken GIB as the dependent variable and SC, IV, DV, ROA as the dependent variables. It has proved that there is positive association between them. Islamic banking is growing in the world at very fast pace. In the near future it will reach till 1300 billion. Persentably, across the 1200 Islamic banking are providing their services. In Pakistan, there is solid platform related to Islamic banking in Pakistan. In 2000 state bank was introduced the first Islamic bank.