Mateen Altaf

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...

Introduction: The first central bank was established in Geneva in 1578. After the World War I, a conference was held in Brussels in 1920 and it was decided that every country must set up its central bank. WHAT IS CENTRAL BANK? “Central bank is a special institution whose customers are commercial banks and state.” According to R. P. Kent: “An institution that is charged with the responsibility of managing the expansion and contraction of the volume of money in the interest of the general public welfare.” State Bank of Pakistan: Central bank of Pakistan is the “State Bank of Pakistan”. State bank of Pakistan was established on 1st July 1948. Quaid-i-Azam Muhammad Ali Jinnah performed its opening ceremony. Now, it is working under the State Bank of Pakistan Act 1956. WHAT IS ECONOMIC DEVELOPMENT? Definition: “It refers to the process whereby the total supply of goods and services of the society increases leading towards improved living standards.” ...