Islamic Banking System of Pakistan: Comparison between Perception and Experience

Islamic banking has grown rapidly in the past three decades with its existence in more than 75 countries globally. The banking system litigates itself to be following Sharia law in its true sense, which is questioned by many religious scholars. This paper follows a qualitative approach to find out the differences of perceptions of Islamic banks and their experiences from two perspectives i.e., customers of Islamic banks and managers of Islamic banks. Our analysis suggests that there exists a difference between what people see Islamic banks are and what they experience. This gap is growing and calls for Islamic banking system to take measures in order to grow their banking system further.