Critical Analysis of the Current Islamic Banking System

Islamic Banking was introduced in Zia’s regime in the 80s. Since then, it has developed very rapidly. Meezan Bank, Dubai Islamic Bank, First Dawood Islamic Bank, Bank Al-Baqarah, Emirates Global Islamic Bank and Bank Islami are full fledged Islamic banks operating in Pakistan. A number of local and foreign scheduled banks have started Islamic banking windows and exclusive Islamic banking branches. It is expected that Islamic banking will capture 12% of the deposit market by 2012.