Poverty and inequality around the world has been rising over the last three decades and the attainment of the Millennium Development Goals (MDGs) seems a far fetched goal. In explaining underdevelopment, Classical Economics has offered many theories and models including but not limited to...

Markets fail in the provision of public goods. Public goods are non-rival and non-exclusive. It creates the problem of free riding. Hence, public goods and infrastructure is often provided by the governments. As discussed in endogenous growth models, the public infrastructure and capital goods...

Like many other countries, aggregate consumption constitutes a major portion of Gross Domestic Product (GDP) in Pakistan. Consumption decisions determine savings decisions. In long term growth literature, differences in long term growth had been explained to a large extent by differences in the...

This paper discusses Islamic principles and how they can help in achieving efficiency along with equity in a market system. We start with the concept of ‘human welfare’ in Islam and show how it is distinct from the concept of welfare in western social sciences. The difference comes from the...

Islamic finance is a set of financial institutions representing a connected financial architecture that works based on prescribed Shari’ah principles. Growth in the industry has been stellar, but, certain principles, the strategic direction and the practices do not warrant celebration yet....

This study analyzes the banks’ internal factors to study the determinants of profitability and assets growth. The study also investigates empirically the reasons why Advance to Deposits Ratio (ADR) is low in Islamic banking. Both descriptive and inferential techniques have been used. This is...

The rapid growth in Islamic finance industry urges us to not only look for alternatives in the Islamic commercial banking, but also focus on the regulator and its role and functions to enable it to work in conformity with Islamic principles. This study reviews limited, but precious academic...

Global financial markets are volatile right now and will remain so for the next 2-years. Equity markets are shaky. Investors risk appetite is suddenly moving to commodities. Bond market is precarious as Sovereign debt risk goes high. Global economy is slowly moving into recession which will be...

Islamic finance industry mostly uses LIBOR linked financial contracts which are akin to debt financing than the more preferable participatory modes of Mudarabah and Musharakah. As per the current orthodox understanding and practice of Islamic finance, the often cited preferable modes like...

The paper aims to present the Islamic appraisal of established theories in academic literature of development economics, both in classical and neo-classical economics. The paper also explains the Islamic concept of human development and shows it to be more welfare maximizing to humans in their...