An Overview of Islamic banking in Pakistan: Modern Economic Perspectives

Abstract

As a result of this study, we want to better understand Pakistan's economic Islamization process and its influence on people's material well-being in light of the economic provisions of the Qur'an and Sunnah (PBUH), in addition to the World Bank's framework for material well-being. According to this study, the Islamic legal notion of daruriyyat (necessities), as articulated in Maqasid al-Shariah, is identical to the English phrase "material well-being." Since the 1980s, economic Islamization ideology has been marketed as the sole answer to all economic problems generated by interest-based capitalism, and the purpose of this study is to investigate how this has happened. The fact that more than 60% of Pakistanis do not have access to the material well-being envisioned by the Islamic Legal System and the World Bank, after over three decades of economic Islamization, is concerning. There is a claim that Islamic economics and finance have been unable to alleviate Pakistan's economic woes in recent years. A study conducted by the Islamic Center for Social Justice and the World Bank found that it was unable to aid those who were deprived of reaching material well-being. Finally, a number of proposals are made in order to aid Pakistan in improving its current Islamic economic and financial circumstances.