Challenges Of Pakistan Islamic Finance Industry

The growth of Pakistan is related with latest banking trends and there is no other debate indeed. Banking sector is mobile and versatile one as per rebounding economy demands. The growth related issue is best in driving change and issues accelerated growth aspect without any demanding aspect. The accelerated growth of banking aspect is no doubt a gap without issuing any emergency.

The growth challenge is only lie under demanding environment for economic system of Pakistan. The supply of human resource is biggest challenge facing right now. Human resource is biggest challenge while managing Islamic finance in this industry. The limited supply of human resource is being considered by departmentalization without any new reform that is not so much possible indeed.

The new endorsements from Islamic finance banking is related with growth objective but Pakistan is not showing same increase in human resource. The first lacking is related with capacity building  and it is biggest endorsement with objective of growth. The capacity building means banking system requires chain of human resource to manage activities both at micro and macro level. From last five years, in Pakistan,  Islamic banking has been struggling with same challenge.

This is the only reason that Pakistan is unable to found new reforms about capacity building and managing human resource without any hurdle. The capacity building is related with issues that should be tackled with Islamic banking and its situations indeed. The second level thing is related with liquidity management and its also endorse that Pakistan’s growth rate of Islamic banking because of its own mistakes and lacking of reform.

The previous five years has experienced that Islamic banking’ growth rate is only 17 percent that is not compatible with growing ration of population in any way. The only projected figure for next five years is 20 percent only that is also less than sufficient. The liquidity management is related with management of human resources without any concern at large level. The product innovation is another missing link that is not present in Islamic banking with any way.

Islamic banking and endorsement of innovative aspect is related with administration level response. Along with these two challenges, in Pakistan, Islamic banking also facing legal and regulatory framework challenge that is beyond its immediate access. Explicitly, Faysal bank and MCB are related with banking aspect and much associated with interest-based financing.

The expansion of demand has explored new opportunities for Islamic banking and segmentation is necessary for Shariah-compliant options. The banking sector in Pakistan should be caring enough to respond any challenge without all norms of  finance industry.