Impact of Domestic Financial Disasters on Islamic Banks Performance in Pakistan: An Empirical Approach

Abstract

This study aims to determine the existence of Islamic banks in Pakistan before and after the domestic financial disaster between (2014-2023). Considering the accessibility of financial statements and reports, the review test was conducted on Meezan Bank, Bank of Islami, and the State Bank of Pakistan (SBP). It was found that the domestic financial disaster had a slight to no negative effect on Islamic organizations. Due to this, it is possible to conclude that Pakistan's Islamic banking industry is resilient and unaffected by the financial disasters affecting the country. Overall, the Islamic banking industry in Pakistan is robust and has the potential to grow further in the future. This shows that the Islamic banking industry in Pakistan is well-positioned to capitalize on future opportunities.