Islamic Finance: Progress and development.

• Position: Industry overview

Byline: Ashley

Islamic finance, because of one of the Islamic doctrines. Compared with ordinary banks, Islamic does not accept or pay interest. Until today, there are many devout toasts who are more likely to keep their money at home. Islamic finance does not pursue the maximization of interests and will focus on social interests. In the banking industry, for example, Islamic banks can provide currency exchange, and trade finance can also use Islamic bonds. However, because the doctrine prohibits interest and gambling, Islamic banks rarely engage in derivative transactions, and any doctrine must be physical. If you invest with Islamic funds, you can't invest in goods and related services that are contrary to Islamic teachings such as alcohol, pork, and tobacco.

The Islamic economic concept

The Islamic economic concept helps to stimulate the development of social economy, and its economic value orientation reflects social vitality. Islam advocates the two generations of Jiqing. While striving to pursue the happiness of the later generations, we must work harder, vigorously develop the economy, and achieve a great enrichment of material life, so as to achieve a happier life in this world.

Allah said in the Qur'an: "When the service is finished, you should be scattered in the place and seek the grace of God. You should remember God so much that you can succeed." Islam advocates the harmonious unity of religious work and social work.

To regard the vigorous development of the economy as "seeking the grace of Allah", then this social work will become a religious good deed. The orientation of the unity of religious work and social work has provided theoretical support for fully mobilizing Muslims to vigorously develop their economy and actively participate in various social construction undertakings.

Islam also emphasizes causality, so encourage charity in financial activities and focus on risk sharing. For example, banks and investors must share the risk of lending, and of course share benefits.

Pakistan is the second largest Muslim country and an important member of the Muslim world. It is also widely involved in the development of Islamic culture, politics, and economy in the world, and in turn, it is deeply influenced by them. Therefore, when studying the economic and financial development of Pakistan, a Muslim country, it is inevitable to link to Islamic finance.

Overview of the development of Islamic finance

Islamic finance is a Muslim country based on Islamic traditional economic thoughts, combined with the new situation of economic development in the 1970s, seeking new ways to gradually form a more systematic Islamic financial...