Analysis of Growth of Ijara Investment in Pakistan (A
case study on Meezan Bank)
Nousheen Abbas Naqvi
Associate Registrar, Khadim Ali Shah Bukhari Institute
of Technology
Anila Perveen
Lecturer, Khadim Ali Shah Bukhari Institute of
Technology
Abstract
Pakistan is among those countries that played an
imperative role for promoting Islamic Banking and
Finance. Islamic Banking industry has dramatically grown
and its annual growth rate is more than 30 % during the
past few years.( SPB-IBB-June 2014) and it has
nationally achieved around 10% of the total market share
of overall banking industry (SBP: Strategic Plan Islamic
Banking Industry of Pakistan 2014 – 2018).Ijara
financing is one of the most popular modes of Islamic
finance and its total share is 8.5% of overall financing
during the recent year up to June 2014 (SPB-IBB-June
2014).Currently there 5 full fledge Islamic Banks, 461
Islamic Banking branches of Conventional Banks are
working as of June 30-2014 in Pakistan (Banking Policy &
Regulations Department, SBP). Researcher has selected
the leading Islamic Bank, Meezan bank as a case study,
the aim of this study is to analyze the Ijara financing
and its growth. Deposits and other accounts and Share
Capital are used as an independent variables and Net
Ijara Investment is taken as dependent variable. Data is
collected from financial statements of bank (secondary
source) for the period of 7 years from 2007 to 2013.
Results of the study show that all the estimated
coefficients are significant.
Keywords: Net Ijara Investment, Share
Capital, Deposits and other accounts.
JEL Classification: G11, G24, G31
