GROWTH AND PROSPECTS OF ISLAMIC BANKING IN PAKISTAN

Islamic banking has undergone tremendous growth in the past decade. This study purports to analyze the growth and development scenario of Islamic banking in Pakistan for financial year 2003-2010 in terms of performance indicators and growth parameters like deposits, capital funds, branch networks, product innovation and number of customers. The financing portfolio of Islamic banking in Pakistanis also highlighted. More and more people are now being publically aware of Islamic banking including its functioning and the products being offered. Thus there is an increase demand of Islamic banking to meet Islamic banking need of customers. This paper also aims at narrating the prospects of Islamic banking in Pakistan as well as its challenges. Islamic banking cemented with the swift market share in banking services in the last eight years. Moreover the endeavors made by the central bank of Pakistan (SBP) for the expansion of Islamic Banks are also incredible. A glance on the current growth of Islamic banking projected that in the vicinity of future, Islamic banking will acquire foremost share in banking industry of Pakistan.