Islamic Banking and Finance: Current Developments and its Future Prospects

The study focuses on IBP and finance in Pakistan, its current tendencies and future prospect s. It has experienced phenomenal growth. SBP wants to grow a moderate and best IBS which is viable with the worldwide financial organization, giving creative Shariah agreeable goods and services in order to accomplish even handed economic development. Currently IBs are offering various Sharia compliant Islamic modes of financing including Murabaha, Musawamah, Mudaraba, Musharaka, Ijarah, Salam, Istisna, Wakala and Islamic Export Refinance. The study determines that the future of Islamic banking is very bright and it requires further many steps to be taken to reach its potential. One of those most important steps is to create awareness about Islamic banking. Islamic Banking Creating Awareness programs include Islamic Banking Awareness Program, Islamic Banking Bulletin, Video Conferences, Business Review Meetings, Quarterly Meetings with the Heads of IBIs and National Institute of Banking & Finance (NIBAF). Fatherly thestep that needs to be taken is to increase its effort. This should be possible by developing the branch network in the present money part and widening further into fresher areas of Microfinance, Horticulture money and little and Enterprise Finance.