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Apr 2025
20 m

Why Islamic banking is taking off

Financial Times
About this episode

A huge chunk of any typical bank’s profits comes from charging interest. But what happens when you can’t do that? This week, we’re traveling to Pakistan with the FT’s Humza Jilani, where the country has decided to make its entire banking sector align with Islamic law, which forbids charging interest. We’ll discuss how Islamic banks function and if this banking model can become Pakistan’s dominant system. 


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For further reading:

Meezan Bank’s soaring shares herald rise of Islamic finance in Pakistan

Clerics’ rule change threatens to throw Islamic debt market into turmoil

World Bank approves 10-year $20bn Pakistan lending package

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Follow Humza Jilani (@humza_jilani) and Saffeya Ahmed on X (@saffeya-ahmed), or follow Saffeya on LinkedIn for updates about the show and more. 


Read a transcript of this episode on FT.com



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