Steps To Implement Shariah Based Financial System In Pakistan

Islamic banking has been defined as, Banking in consonance with the ethos and value system of Islam and governed by the principles and rules laid down by Islamic Shariah. Interest free banking is a narrow concept denoting a number of banking instruments or operations, which avoid interest. Islamic banking, is expected not only to avoid interest-based transactions, prohibited in the Islamic Shariah, but also to participate actively in achieving the goals and objectives of an Islamic economy. The overall implementation of Islamic Banking System is a long process requiring development of legal and regulatory framework, institutions, markets, and efficient and appropriate practices. This process requires constant monitoring and fine-tuning. Government should be attentive to the following factors, which lead to the development of Islamic banking in Pakistan. Public Awareness Program:

There should be awareness programs for people about Islamic banking system, products offered, its rules and regulations and how it is different from conventional banking. And to remove misconceptions about Islamic banking in mind of general public.

Inclusion of islamic principles in education system:

Government should include Islamic shariah in education system, so that there should be awareness in students. It should also pay attention to research work in Islamic field. So that more aspects should be explored.

Shariah Audit:
There should be Shariah audit in banks on regular basis, to keep check on accounting principles in conformity with the Islamic dictates

Policy Making Committee:

There should be a committee that formulate a comprehensive policy framework for Islamic financial system and will suggest practical steps needed to be taken to implement the system in order to maximize equity-based financing instead of the widespread debt-based system.

Shariah Supervisory Boards:

There should be supervisory board that keep check on banking operations that whether banks are operating their functions according to Islamic rules and regulations.

Proper Advertisement campaign:

Every bank should advertise products and services offer by Islamic banks in order to spread awareness among general public. Banks must adopt intensive and aggressive marketing and advertising strategy to promote Islamic products. New marketing strategies should be introduce in order to attract customers.

New Products and Schemes:

Islamic banks should introduce new products and schemes and maximum privileges should be given to customer.

Trained Staff:
Islamic banks must pay attention that their staff should be highly trained about Islamic products ,its rules and services. Training sessions should be arranged on regular basis so that employees should be cleared about main difference among conventional and Islamic banking.

Unique Products:
Banks should introduce their new products rather than replicating products of conventional banks. It must develop unique products to attract customers.

CONSISTANCY IN PRODUCTS TITLES: There should be consistency in products titles among all Islamic banks in order to remove confusion faced by customers. GOVERNMENT COMMITMENT: Government should be committed to development of isalmic financial system. It should take practical steps for growth of Islamic system. They should bring all the scholars to the point that Islamic banking is Halal and the right thing to do it. It will also result economic benefits. As all money will come in circulation that was in form of individual savings.