By Dr. Burhan Ali Shah & Dr. Ghulam Shabbir Khan Niazi
Abstract
The history of Islamic banking in Pakistan is unique
having paramount significance. The seed of Islamic banking was sown by the
Quaid e Azam in his inaugural address at SBP on July 1, 1948 followed by
constitutional provisions requiring abolition of Riba and promoting Islamic
banking. The role of CII is critical in promoting Islamic banking in the
country. Islamic banking emerged with full swing in 1980s but was declared
against the principles of Shari’ah by the FSC in 1991 and SAB in 1999
respectively. The current form of Islamic banking emerged in 2002 in parallel
with conventional banking and spread all over the country. However, it still
needs to put efforts to be universally recognized.
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