Developments in Islamic Banking The Case of Pakistan

Explores the theoretical and practical features, recent developments and future prospects of interest-free banking, illustrated by a detailed analysis of the past twenty-five years of the interest-free banking movement in Pakistan (1980-2005). It helps the reader to understand the model underpinning interest-free banking, based on principles of free market mechanism, efficiency, ethical investment and socio-economic justice. And it assesses the practical success of interest-free banking at individual Islamic banks and at state level, as in the case of Pakistan.

MOHAMMAD MANSOOR KHAN is Research Associate in the Department of Economics and Finance at La Trobe University, Melbourne, Australia. M. ISHAQ BHATTI is Senior Lecturer in the Department of Economics and Finance at La Trobe University, Melbourne, Australia.

Introduction * The Guiding Principles and Goals of the Islamic Economic System * The Interest-Free Finance Movement in Global Financial Markets * The Conceptual Development of Interest-free Banking and Finance in Pakistan (The CII Report 1980) * The Implementation and Practice of Interest-Free Banking and Finance in Pakistan (1981-1991) * The 1991 Federal Shariat Court (FSC) Judgement on Interest (Riba) and Interest-free Banking Practice in Pakistan * The Attempts of the Commission of Islamization of Economy (CIE) for the Revival of Interest-Free Banking and Finance Movement in Pakistan(1992-1998) * The Supreme Court Judgements of 1999 and 2002 on Interest (Riba) and Interest-free Banking and Finance Practice in Pakistan * The Causes of Failure of Interest-Free Banking and Finance Movement in Pakistan * Summary and Conclusions Introduction * The Guiding Principles and Goals of the Islamic Economic System * The Interest-Free Finance Movement in Global Financial Markets * The Conceptual Development of Interest-free Banking and Finance in Pakistan (The CII Report 1980) * The Implementation and Practice of Interest-Free Banking and Finance in Pakistan (1981-1991) * The 1991 Federal Shariat Court (FSC) Judgement on Interest (Riba) and Interest-free Banking Practice in Pakistan * The Attempts of the Commission of Islamization of Economy (CIE) for the Revival of Interest-Free Banking and Finance Movement in Pakistan(1992-1998) * The Supreme Court Judgements of 1999 and 2002 on Interest (Riba) and Interest-free Banking and Finance Practice in Pakistan * The Causes of Failure of Interest-Free Banking and Finance Movement in Pakistan * Summary and Conclusions