Page 78 - CMA Journal (Mar-Apr 2025)

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47% see competition from conventional banks as the biggest challenge

When asked about the key challenges faced What challenges do you think Islamic banking faces in Pakistan?
by Islamic banks in Pakistan, 47% of
respondents identified competition from
conventional banks as the most pressing
issue. Additionally, 43% pointed to a “lack of 47% ŽŵƉĞƟƟŽŶ ĨƌŽŵ
awareness,” 37% cited “limited product ĐŽŶǀĞŶƟŽŶĂů ďĂŶŬƐ
offerings,” and 34% mentioned “regulatory
issues.” These findings highlight the need to 43% Lack of awareness
address market awareness, product Limited product
development, and regulatory support to 37% ŽīĞƌŝŶŐƐ
strengthen the position of Islamic banking.
34% Regulatory
issues

57% believe that Islamic banks can replace conventional banking in Pakistan

Do you believe Islamic banking can fully When asked whether Islamic banks could
replace conventional banking in Pakistan? replace conventional banking in Pakistan, 57%
of respondents expressed confidence in a full
transition. Meanwhile, 34% believe both
ĂŶŬ Not systems will continue to coexist, and only 9%
9% were uncertain. These results highlight strong
sure
public belief in Islamic banking as a viable
34% WĂƌƟĂůůLJ͕ ďŽƚŚ alternative to the conventional system.
ǁŝůů ĐŽĞdžŝƐƚ

57% Yes, completely

59% suggest better regulatory framework to improve Islamic banking

What improvements would you suggest for
Islamic banking in Pakistan?
When asked how Islamic banking in Pakistan
could be improved, 59% of respondents
recommended strengthening the regulatory
framework. Additionally, 55% emphasized the ĂŶŬ 59% ĞƩĞƌ ƌĞŐƵůĂƚŽƌLJ
need for greater public education, and 48% ĨƌĂŵĞǁŽƌŬ
suggested expanding product offerings. Expansion of
Another 28% proposed enhancing customer 48% ƉƌŽĚƵĐƚ ŽīĞƌŝŶŐƐ
service. These responses point to the need for Improved
structural, regulatory, and promotional reforms 28% customer service
to support the sector’s sustained growth.
wa
wa
a
a
wa
re
re
a
re
re
re
o
55% More awarenness
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c campaaigns s
n
gn
p
p
p
gn
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76 ICMA’s Chartered Management Accountant, Mar-Apr 2025