The objective of the study is to identify and analyse different modes of financing offered by Islamic banks of Pakistan. For the analysis purpose, the study chosen four full-fledge Islamic banks which are currently operating in Pakistan for the period of 2010 to 2016. Audited annual financial reports of these Islamic banks are used to obtain the data related to different modes of financing each bank is offering to consumers. The findings of the study reported that, in year 2010, Murabaha and Ijarahwere were the most popular modes of financing for all sample banks, which become gradually less popular among Islamic banks of Pakistan as modes of financing and diminishing Musharakah financing is replacing Murabaha and Ijarah financing over the study period of 2010 to 2016. The study provides evidence that equity-based financing, which is the essence of Islamic banking, is strengthening its roots in Islamic banking industry of Pakistan. The study provides policy implications for regulators, especially for product development departments at different Islamic banks, for designing and pricing Islamic financial products. There is a need for innovativeness in developing the variants of popular modes of financing in order to remain viable in the industry.