Islamic Banking in Pakistan: Challenges and Opportunities - A Performance Based Analysis
Islamic Banking and Finance Review, Vol. 1, No. 1, 2014
23 Pages Posted: 18 May 2015 Last revised: 21 May 2015
Date Written: 2014
This study is being coxed on performance measurement of Islamic Banking sector of Pakistan. The study has intended to show that Islamic banking sector of Pakistan may work at its optimal level if the altogether separate banking regulatory framework is introduced parallel to the conventional. The secondary data based study has been conducted to measure the performance of the Islamic banks while considering various performance based parameters. The parameters have included productive, operational, allocative, distributive, and stabilization efficiency of Islamic Banks. The study only takes the data of those Islamic banks for the performance measurement, which are working as full-fledged Islamic banks in Pakistan. This research may help the State Bank of Pakistan (SBP) and policy makers to redesign their Islamic Banking priorities and take initiative to address those particular areas where its attention is actually needed to attract and sustain the level of Islamic Baking in the country. Most of the operational issues of Islamic banking leading to its sustainability and growth are brought under discussion. First comprehensive study is conducted on operational issues of Islamic Banking, uncovering the real exposure of future direction.
Keywords: Islamic Banking, Operational Performance Measurement, Financial Performance Parameters
JEL Classification: P17, P170
Suggested Citation: Suggested Citation