Pakistan Islamic Banking Sector Growth And Shariah Compliance Challenges

Recent developments in Pakistan's Islamic finance sector indicate a significant shift towards Shariah-compliant banking, with expectations that the market share of Islamic banking will reach 30% by 2026. The sector is projected to grow at an impressive annual rate of 25-28%, reflecting a robust demand for ethical investment options. Imtiaz Gadar, CEO of Al Meezan Investment Management Limited, emphasized in a recent discussion that misconceptions about the returns of Shariah-compliant funds persist, stating, "The aim is to separate perception from reality for investors seeking to align financial decisions with religious values." This sentiment is echoed across multiple sources, highlighting the growing interest in Islamic finance as a viable alternative to conventional banking systems.