Role of Islamic Banking in Economic Growth of Pakistan

Abstract

Purpose: This paper’s investigation suggests that Islamic Banking is spreading its wings in Pakistan and is arranging for positive advancement heading. Islamic banking particularly in Pakistan where resources of Islamic absolute banks Rs: 1.7 Trillion. The goal of this research is to explore the effects of Islamic banking on Pakistan's economic development. This paper investigates that connection between advancement of Islamic financial framework and monetary development in the Islamic Republic of Pakistan.
 Approach: This paper explains the effect of Islamic banking on Pakistan's economic development. This report investigates a new approach to defining the success of the system of the Islamic banking industry in the context of Pakistan. After Utilizing econometrics examination, quarterly time-arrangement information of financial loaning and all out resources an intermediary for the advancement of Islamic banking and GDP as an intermediary for monetary development.
 Findings: To develop the trust of stakeholders, policies and initiatives should be applied. In order to satisfy the business expectations, executives should have concentrated on research and development. This will help draw new buyers and retain the confidence of existing investors. Management can raise the services of Islamic banking goods and services to new possible clients more efficiently.
 Implications: A major financial institute with a wide variety of activities would adopt new-innovation techniques for Islamic banking goods. The observational outcomes for the most part connote that over the long haul Islamic banks financing is positive and essentially corresponded with monetary development in Pakistan.