Abstract: The purpose of this paper is to explore the working in Pakistan made for interest free banking. Interest free banking is the basis of Islamic banking. Islamic banking is growing all over the world in the Muslim countries as well as Non-Muslim countries. Islamic banking is governed by the rules and regulations of Islamic economies with the close monitoring of Islamic Sharia’h principles. Interest free banking is not popular in Muslims but also in the Non-Muslims as well due the benefits provided by it. Islamic banking in Pakistan is at its fastest track and many Islamic banks have been emerged in the last decade and even conventional banks also has opened separate branches to deal with the customer which require Islamic banking services. Islamic banking has two types of major customers. First, the people which are more close to their religion they use Islamic banking. Second, the customers who want to gain the benefits provided by Islamic banking. Demographic composition of Pakistan 2014 shows that 96.40% are the Muslims and remaining are the Christians, Hindus and others. Islamic banking has gained the intention of business class due to its attractive products. In the current paper the literature of Islamic banking has been discussed and tried to bifurcate the difference between Islamic and conventional banking. This model is more effective in the Pakistan due to the more Muslim population.
Keywords: Interest Free Banking, Islamic Banking, Conventional Banking, Riba, Gharar.
Title: Possibilities of Interest Free Banking in Pakistan
Author: Zahid Iqbal, Maria Quibtia
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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