Islamic Banking has also taken a very good start and currently almost all major conventional banks have opened their stand-alone Islamic Banking Branches (IBBs) in addition to six full fledged Islamic banks operating in the country. There has always been a great demand from agricultural customers to have Islamic financing products for agriculture sector. The Islamic banks and IBBs have also shown great interest in adopting Shariah Compliant agriculture finance as a viable business line. However, there was lack of awareness of Islamic Modes of Financing among traditional agri financing bankers and Islamic Banks were naive to the requirements and business cycles of farm and non-farm sectors in the country.
Source: Agricultural Credit Department Islamic Banking Department State Bank of Pakistan
Click here to read more.