An analysis of the Pakistani banking industry's performance in relation to Islamic and conventional banking


  • Aamir Kibria PhD Scholar, Institute of Commerce, University of Sindh, Jamshoro, Sindh, Pakistan Author
  • Mehtab Begum Siddiqui Assistant Professor, Institute of Commerce, University of Sindh, Jamshoro, Sindh, Pakistan Author


Financial comparison, Islamic banking, conventional banking


Islamic banking upholds the financial laws of Sharia. Here, transactions are carried out honestly, without the use of riba, and with an emphasis on furthering Islamic economic goals and objectives. On the other hand, conventional banks follow regulations that were created by humans, with the set interest rate acting as the primary activity. This research analyses the performance of Islamic and conventional banks in Pakistan from 2020 to 2022. The performance of two conventional banks (MCB and HBL) and two Islamic banks (Meezan and Dubai Islamic) in Pakistan from 2020 to 2022 will be examined and assessed in this study. Financial ratio analysis for liquidity, profitability, solvency, and activity analysis of the designated institutions from both categories were performed to evaluate total performance. According to the findings, conventional banks in Pakistan would be more profitable than Islamic banks from 2020 to 2022. In the remaining ratios of current, cash, debt to asset, and asset turnover, Islamic banks outperform conventional banks in Pakistan.


Ali, U., Rehman, K. U., & Malik, M. Y. (2019). The influence of MHD and heat generation/absorption in a Newtonian flow field manifested with a Cattaneo–Christov heat flux model. Physica Scripta, 94(8), 085217.

Ariss, R. T. (2010). On the implications of market power in banking: Evidence from developing countries. Journal of banking & Finance, 34(4), 765-775.

Badreldin, A. M., & Kalhoefer, C. (2009). The effect of mergers and acquisitions on bank performance in Egypt.

Farooq, M., & Zaheer, S. (2015). Are Islamic banks more resilient during financial panics?. Pacific Economic Review, 20(1), 101-124.

Fernandez-Moran, R., Al-Yaari, A., Mialon, A., Mahmoodi, A., Al Bitar, A., De Lannoy, G., ... & Wigneron, J. P. (2017). SMOS-IC: An alternative SMOS soil moisture and vegetation optical depth product. Remote Sensing, 9(5), 457.

Guymer, R. H., Markey, C. M., McAllister, I. L., Gillies, M. C., Hunyor, A. P., Arnold, J. J., ... & Vincent, R. (2019). Tolerating subretinal fluid in neovascular age-related macular degeneration treated with ranibizumab using a treat-and-extend regimen: FLUID study 24-month results. Ophthalmology, 126(5), 723-734.

Hasan, M., & Dridi, J. (2011). The effects of the global crisis on Islamic and conventional banks: A comparative study. Journal of International Commerce, Economics and Policy, 2(02), 163-200.

Hassan, T. A., Hollander, S., Van Lent, L., Schwedeler, M., & Tahoun, A. (2020). Firm-level exposure to epidemic diseases: Covid-19, SARS, and H1N1 (No. w26971). National Bureau of Economic Research.

Hayek, S. S., Brenner, S. K., Azam, T. U., Shadid, H. R., Anderson, E., Berlin, H., ... & Leaf, D. E. (2020). In-hospital cardiac arrest in critically ill patients with covid-19: multicenter cohort study. Bmj, 371.

Hesse-Biber, S. N. (2010). Mixed methods research: Merging theory with practice. Guilford Press.

Hussain, T., Arshed, N., & Kalim, R. (2020). An appraisal of the role of Islamic banking development and economic growth. Journal of Applied Economics and Business Studies, 4(4), 215-236.

Johnes, J., Izzeldin, M., & Pappas, V. (2014). A comparison of performance of Islamic and conventional banks 2004–2009. Journal of Economic Behavior & Organization, 103, S93-S107.

Kenourgios, D., Naifar, N., & Dimitriou, D. (2016). Islamic financial markets and global crises: Contagion or decoupling?. Economic Modelling, 57, 36-46.

Metwally, M. M. (1997). Differences between the financial characteristics of interest‐free banks and conventional banks. European Business Review.

Mrad, F., & Mateev, M. (2020). Banking System in the MENA Region: A Comparative Analysis Between Conventional and Islamic Banking in the UAE. In Sustainable Development and Social Responsibility— Volume 1 (pp. 61-85). Springer, Cham.

Parsa, A. B., Movahedi, A., Taghipour, H., Derrible, S., & Mohammadian, A. K. (2020). Toward safer highways, application of XGBoost and SHAP for real-time accident detection and feature analysis. Accident Analysis & Prevention, 136, 105405.

Pougnet, L., Nevez, G., & Le Gal, S. (2019). Airborne interindividual transmission of Pneumocystis jirovecii. OBM Genetics, 3(2), 1-1.

Shekerdemian, L. S., Mahmood, N. R., Wolfe, K. K., Riggs, B. J., Ross, C. E., McKiernan, C. A., ... & Burns, J. P. (2020). Characteristics and outcomes of children with coronavirus disease 2019 (COVID-19) infection admitted to US and Canadian pediatric intensive care units. JAMA pediatrics, 174(9), 868-873.

Sherbin, L., & Rashid, R. (2017). Diversity doesn’t stick without inclusion. Harvard Business Review, 1, 1-5.

Uddin, S., Fowler, S. W., & Saeed, T. (2020). Microplastic particles in the Persian/Arabian Gulf–a review on sampling and identification. Marine Pollution Bulletin, 154, 111100.




How to Cite

An analysis of the Pakistani banking industry’s performance in relation to Islamic and conventional banking. (2022). International Research Journal of Management and Social Sciences, 3(3), 31-39.

Similar Articles

1-10 of 89

You may also start an advanced similarity search for this article.

Most read articles by the same author(s)