Islamic Banking Career Opportunities in Pakistan Scope Jobs Requirements Salary guideline for admissions, courses, programs, professional training scheme and income details to start and choice Islamic Banking field in Pakistan. Islamic banking, also known as non-interest banking, is a banking system that is based on the principles of Islamic law and guided by Islamic economics. Islamic banks make a profit through equity participation, which requires a borrower to give the bank a share in their profits rather than pay interest.
Islamic banking which has gained all progress in our country Pakistan, it has turned out to be the fifth biggest and also largest market. This concept usually and mainly works on the interest fee loan scheme basis. Islamic banking or Islamic finance or sharia-compliant finance is banking or financing activity that complies with sharia and its practical application through the development of Islamic economics. Some of the modes of Islamic banking/finance include Mudarabah, Wadiah, Musharaka, Murabahah, and Ijara.
Facts History on Islamic Banking System:
- It is in the year of 2002 that this concept of Islamic banking was introduced for the first time in Pakistan. This mechanism contributes up to the range of 11.9% in Pakistan. There are 21 institutions which are operating on the concept of Islamic banking.
- In Pakistan, we have 5 pure Islamic banks, rest of the banks too work and operate themselves on the commercial basis. 2368 are the total branches of Islamic banking we have in Pakistan.
- Instead, it is made to work in the real economy, on real projects. Thus, instead of traditional accounts with given interest rates, Islamic banks provide accounts which offer profit/loss. The bank in turn purchases assets with your money, which generate returns for the bank.
Islamic Banking Career Opportunities in Pakistan Scope Jobs Requirements
Framework Policy Adopted for Islamic Banking
- It is on banking companies ordinance 1962 that every single Islamic bank operate and work in Pakistan. This framework policy is designed by the State bank of Pakistan. This is a sort of banking system which is all in consonance and in relation with the Islamic spirit and Islamic value system. This system work on the principles which are mainly laid down and put forward by Islamic Shariah. This Islamic banking has now gained a broader scope and also a broader one meaning. It has convinced people to come out from the transformation mode of using conventional money lending system.
- This banking activity is completely consistent with the aims and principles of Shariah. This concept has acquired a practical application and now this system is gaining rapid prominence in the area of Islamic economics. Its baking principles all emphasize on the moral and ethical values.
- You can also call this Islamic banking system as non-interest banking. You can say that there are two fundamental principles which are followed in this Islamic banking system and they are sharing of profit and loss and the second fundamental principle is the prohibition and cancellation of interest amounts.
Islamic Banking System and Commercial Banking Systems:
Difference Between The Concept of Islamic Banking System and Commercial Banking Systems as per following,
- Both of these banking systems are way far different from each other. In this Islamic banking system, we combine the factors of faith and finance so that real and actual money needs can be served. On the other hand, in this commercial banking system, no such purpose is seen or served.
- So far we have seen no standard way which can define and explain the concept of Islamic banking. But if we are going to speak on the broader terms then we can say that an Islamic bank is an institution which mobilizes all of the financial resources and then invest them so that islamically –acceptable kind of social objectives and financial objectives can be achieved.
- Islamic banking or Islamic finance or sharia-compliant finance is banking or financing activity that complies with sharia Islamic law and its practical application through the development of Islamic economics.
Islamic banking, also known as non-interest banking, is a banking system that is based on the principles of Islamic, or Sharia, law and guided by Islamic economics. Islamic law prohibits collecting interest or “riba.