This paper critically and systematically reviews previous literature on Risk Mitigation in an interest free banking system. The paper, through a study of literature,identifies different forms of risks that are general to all financial institutions and are largely systematic. The review highlights unique risks and unique risk management practices which are specific to Islamic Banking and Financial system. The review enables us by highlighting the importance of the Islamic financial system in the form of real economic activity it performs, unlike the conventional financial system. The Islamic banking system does not permit the use of conventional risk management practices and therefore require risk mitigation practices that are distinctive and particular to Islamic Financial Institutions. A conceptual framework is proposed based on the review of literature proposing three main regulatory variables comprising of Shari'ah Compliant Prudent investing, financing and transactions, Separate Advisory of Scholars and, Integrated Accounting, Auditing and Financial Systems. All these three variables,when implemented, results inadequate capital for absorbing risks,Shari'ah Compliant business practices and monitoring and,identification and controlling of risk factors. This leads to managing unique risks particular to Islamic Financial System through policies and regulations, resulting in sustained profits of the business by avoiding adverse effects on institutions, thus ensuring long term stability and growth. Furthermore, methodology and directions for future research are discussed.

The study examined National Holiday Anomaly in Pakistani Stock Market. Specifically KSE 100 index data has been used by this study. The data of ten years (2004-2013) has been considered in order to check holiday anomaly. T-Test is used to check the presence of holiday anomaly. The study investigated holiday anomaly for each individual national holiday, each individual year and whole data sample. The results of all the three cases are insignificant suggesting the absence of National Holiday Anomaly in Pakistani Stock Market. The absence of such anomaly may be due to the nature of these holidays. As these holidays are not surrounded by any such activity which can affect the decision process of investors. Therefore based on the evidence provided by this examination the study can say that National Holiday Anomaly does not exist in Pakistani factors which need to be considered in order to understand Pakistani Stock Market in detail

Terrorism is a critical issue throughout the world. In Pakistan, terrorism is one of the major obstacle in the growth of economy. The purpose of the study is to analyze the impact of terrorism in Karachi on the performance of KSE 100. Overall 27 big terrorist activities are considered in four years, ranging from 2011 to 2014. The performance of Karachi stock exchange is measured from the return of KSE 100 index. Moreover, the performance of KSE 100 index against terrorism in Karachi are analyzed through event study methodology and t-test. The result of the study shows that terrorism in Karachi has no significant impact on Karachi stock exchange 100 in all estimation windows. There is a little impact of some pre-event days on post-event days. But overall there is no significant result of terrorism in Karachi on KSE 100. The result highlights that the intensity of terrorist events is an important contributor in signifying the impact of terrorist events on KSE 100 index.

This study critically questions the PLS paradigm of Islamic banks in fair distribution of profits.PLS paradigm theoretically enforces that there should not be a significant difference between the returns offered to IAH and returns offered to shareholders. Smoothing of return can have a potential problem as IAH do not have any control over managerial decisions while banks owner equity is affected through absorption through displaced commercial risk. Therefore, this study analyzes the previous literature in a critical and systematic way to ascertain if Islamic banks are distributing profits in a realistic manner or there are some anomalies in the PLS paradigm of Islamic banks. Furthermore, the literature was analyzed critically to find out the associated factors and constraints that lead Islamic banks to impairment of PLS paradigm. Through analysis of the literature, smoothing of income and PDM is discovered in the empirical studies of different researchers.Furthermore, constraints to efficiently and effectively managing the fair distribution of profits have been identified in the literature. These constraints shape several factors, which are broadly categorized as banking characteristics, macroeconomic and financial environment, geographic and population characteristics; corporate and legal environment. A diagrammatic representation of constraints framework is suggested based on available literature. Furthermore, future directions for future research are provided at the end