Trends and volume of successful application of Musharakah as a major mode of financing in Pakistan: A case study of Meezan bank limited

Abstract

The objective of this study is to examine the trends and volume of successful application of musharakah as Islamic modes of financing among Islamic financial institutions (IFI) and standalones Islamic branches (SAB) of conventional banks in Pakistan. This study has taken four full Islamic banks and four SAB banks, who provide their services for musharakah financing. The data set for all eight banks has been extracted from annual reports of these banks, started from 2011 to 2018 and used univariate analysis. The findings of this study indicate that Meezan bank leads in running musharakah investment portfolio from both Islamic banks and SAB of conventional banks with four hundreds and seventy two (472.45) billions rupees in total and (86.34%) percent growth in Running Musharakah portfolio annually. Whereas, bank Al-Falah leads in running musharakah investment from SAB with twenty five (25.353) billions rupees. Furthermore, Meezan bank limited (MBL) gains success in running musharakah investment as sixty seven (67.61) billions Pakistani rupees in one year among all banks operating running musharakah investment banks in Pakistan.