The factors which globally and particularly in Pakistan that hinder the progress of Islamic banking

Abstract

The study conducted on Islamic banking was aimed to review briefly the progress in developing Islamic banking and discuss the prospects and challenges. This paper articulates the case for Islamic baking in a very comprehensive and effective manner, the main purpose behind this was to highlight those factors which hinder the growth of Islamic banking globally and above all from Pakistan perspective. After the study it was analyzed that there are various factors which contributing in slow progress of Islamic banking. These factors are less awareness about the operations, understanding regarding the framework of Islamic baking as compared to conventional banking, marketing strategy and the other reason for the Islamic banks not being successful is that the Government supports .In the end some recommendations have been made that what action should be taken at Governmental and regulatory level in promoting of Islamic banking in Pakistan.