Islamic banking and finance operate according to principles derived from Islamic law (Sharia), which prohibits interest (riba), excessive uncertainty (gharar), and gambling (maysir). Pakistan has developed a comprehensive legal framework to regulate Islamic financial institutions and ensure compliance with Sharia principles.
This article examines the legal structure of Islamic banking in Pakistan, including the role of the State Bank of Pakistan, Sharia advisory boards, and the courts in overseeing Islamic financial transactions. We also discuss common Islamic financial instruments, such as murabaha, ijara, musharaka, and sukuk.
At Mansoor Law Associates, our banking and finance experts provide specialized legal services for Islamic financial institutions and their clients, ensuring compliance with both Sharia principles and Pakistani law.