By Imran Hussain Minhas
Abstract
The Government of Pakistan took several steps to Islamize banking system in Pakistan. Despite a set back they continued to proceed further and ultimately they succeeded in setting up this system.
After Islamization of Banking Islamic products were introduced. Modaraba operated as a corporate entity under regulating framework of Security and Exchange Commission of Pakistan. The Modaraba initially made good progress but later on its growth was checked. Other Islamic products like Sukuk are also operating. Islamic funds and Islamic pension fund were also launched and are regulated by SECP.
The ingredients for success are available in Pakistan, but they have not been nurtured. For Islamic finance to thrive, there will need to be more focus on liquidity management, manpower and public awareness.
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