Islamic banking is different from modern day conventional banking that is based on the interest. Islam has its own principle of trade and profit sharing that ensure the zero involvement of interest or markup rate at all. In Islamic banking, banking activity is directly and indirectly based on the principles of Sharia or those rules and regulations not in conflict with Sharia Law, such as conventional good governance and risk management rules.
The banking sector in Pakistan is regulated by the State Bank of Pakistan (SBP). According to SBP, “It aims to evolve a stable and distinct Islamic banking system based on Shariah principles that create value for all stakeholders particularly the users and providers of Islamic financial services.”
In Pakistan, both Islamic and conventional banks are operating. However, the number of Islamic banks in Pakistan considerably low than conventional banking. At present, Pakistan has five specialized Islamic banks while most of the rest of the banks have Islamic windows to accommodate the Islamic banking for the willing customers.
Here is the list of specialized Islamic banks in Pakistan.
1. Meezan Bank
4. Burj Bank
In addition to special Islamic banking, most of the rest of banks like conventional banks have Islamic windows that deal in normal Islamic banking transactions.
- UBL Ameen
- Bank of Punjab Taqwa Islamic Banking
- MCB Islamic Bank
- Bank Alfalah Islamic
- Saadiq by Standard Chartered
- Aitmaad by National Bank of Pakistan
- Summit Bank Riba Free Banking
- HBL Islamic Banking (HBL-IB)
- Askari Bank Islamic Banking
- Bank Al Habib Islamic Banking
- Silk Bank Emaan Islamic Banking