Internship Report of an Islamic Bank(Meezan Bank) in Pakistan
INTRODUCTION
WHAT IS BANK? A bank is a financial institution, which deals with money and credit. It accepts deposits from individuals, firm and companies at a lower rate of interest and gives at a higher rate of interest to those who need them. The difference between the terms at which it borrows and those at which it lends from the source of it profit. A bank, thus, is a profit earning institution.
HISTORY OF ISLAMIC BANKING IN PAKISTAN
1947
The inception of Pakistan as the first Islamic Republic created in the name of Islam.
1949
The Objectives Resolution was adopted by the first Constituent Assembly based on the ideology of a sovereign Islamic state. This was the first step in the conception towards Pakistan’s Constitution.
1956
The first Constitution defined Islam as State Religion and all laws to be according to the injunction of the Quran and Sunnah.
1962
The establishment of Council of Islamic Ideology (CII) was followed by the conception of the second constitution of Pakistan.
1973
The third constitution of Pakistan was passed allowing comprehensive legislation on Islamic principles and establishment of Federal Shariat Court.
1980
CII presents report on the elimination of Interest genuinely considered to be the first major comprehensive work in the world undertaken on Islamic banking and finance.
In this period President Zia ul Haq imposed profit and loss sharing accounts as a compulsion instead of interest bearing accounts, he also started deduction of Zakat from bank accounts in Islamic prospect.
1985
Commercial banks transformed their nomenclature stating all Rupee saving accounts as interest-free. However, foreign currency deposits in Pakistan and on lending of foreign loans continued as before.
1991
Procedure adopted by banks in 1985 was declared unIslamic by the Federal Shariat Court (FSC). The Government and some banks/DFIs made appeals to the Shariat Appellate Bench (SAB) of the Supreme Court of Pakistan.
In 1991 thsese two new
WHAT IS BANK? A bank is a financial institution, which deals with money and credit. It accepts deposits from individuals, firm and companies at a lower rate of interest and gives at a higher rate of interest to those who need them. The difference between the terms at which it borrows and those at which it lends from the source of it profit. A bank, thus, is a profit earning institution.
HISTORY OF ISLAMIC BANKING IN PAKISTAN
1947
The inception of Pakistan as the first Islamic Republic created in the name of Islam.
1949
The Objectives Resolution was adopted by the first Constituent Assembly based on the ideology of a sovereign Islamic state. This was the first step in the conception towards Pakistan’s Constitution.
1956
The first Constitution defined Islam as State Religion and all laws to be according to the injunction of the Quran and Sunnah.
1962
The establishment of Council of Islamic Ideology (CII) was followed by the conception of the second constitution of Pakistan.
1973
The third constitution of Pakistan was passed allowing comprehensive legislation on Islamic principles and establishment of Federal Shariat Court.
1980
CII presents report on the elimination of Interest genuinely considered to be the first major comprehensive work in the world undertaken on Islamic banking and finance.
In this period President Zia ul Haq imposed profit and loss sharing accounts as a compulsion instead of interest bearing accounts, he also started deduction of Zakat from bank accounts in Islamic prospect.
1985
Commercial banks transformed their nomenclature stating all Rupee saving accounts as interest-free. However, foreign currency deposits in Pakistan and on lending of foreign loans continued as before.
1991
Procedure adopted by banks in 1985 was declared unIslamic by the Federal Shariat Court (FSC). The Government and some banks/DFIs made appeals to the Shariat Appellate Bench (SAB) of the Supreme Court of Pakistan.
In 1991 thsese two new