History of Islamic Banking in Pakistan
As most of you would know, Pakistan was created in the name of Islam and as an Islamic state in 1947. Therefore, since its independence, religious political leaders and scholars were pressing the demand Islamic Banking in Pakistan and to eliminate the Interest (Riba) completely from the Banking industry & financial institutions of Pakistan. Even the Constitution of Pakistan states that it is the state`s objective to remove Riba based transactions from within the economic system of Pakistan. But unfortunately, this goal hasn’t been achieved, at least so far. The demand of Interest-Free economy from the religious scholars were strong during the period of 1947 – 1960, but it wasn’t successful because no solid steps were taken to make it actually happen and find an alternate solution that can completely remove the Riba based banking system of Pakistan. History of Islamic Banking in Pakistan During the period of 1960 – 1977, the Council of Islamic Ideology (CII) created a stro...