Abstract
Shar¯ı‘ah compliance of Islamic financial institutions
is one of the most important aspects of research in these days.
In Pakistan, Shar¯ı‘ah compliance is made essential for Islamic
Banking Institutions (IBIs) by the regulatory body, the State Bank of
Pakistan (SBP). To comply with the Shar¯ı‘ah0
s rules and regulations,
SBP, therefore, introduced a comprehensive Shar¯ı‘ah Governance
Framework (SGF) in 2015. It is the duty of Shar¯ı‘ah board to
ensure that transactions of the IBIs fall under the ambit of Islamic
commercial law. This study, primarily, discusses two dimensions
regarding the compliance of the IBIs’ business, i.e., whether it is
an illusion or reality. Discussion in "Focused Group", an important
technique of qualitative research method has been adopted. While
following this, data has been collected through one-on-one interviews.
A sample size of fourteen (14) Informants (7 Shar¯ı‘ah advisors
associated with Islamic banks and finance institutions, and 7 Shar¯ı‘ah
scholars) was drawn; covering, mainly, two major cities of Pakistan
i.e., Lahore and Karachi. Moreover, Shar¯ı‘ah Advisors have been
selected from the Securities and Exchange Commission of Pakistan
(SECP) registered list. Shar¯ı‘ah scholars, on the other hand, have
been taken from recognized educational institutes of HEC. Interview
questions, of the present work, are directly related to Shar¯ı‘ah
compliance of IBIs in Pakistan.The findings reveal that Islamic banks
are Shar¯ı‘ah compliant in Pakistan
Ali Sajjad , Lutfullah Saqib , Muhammad Zia-ul-Haq. (2020) Compliance of Islamic Financial Institutions in Pakistan with the Principles of Islamic Commercial Law: An Illusion or Reality (Views of Islamic Law Scholars), Journal of Islamic Business and Management, Volume 10, Issue 1.
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