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Since the 1970’s, their market share has risen from 2% to about 15% today as measured by assets in the banking system. The market’s current annual turnover is estimated to be $70 billion, compared with a mere $5 billion in 1985, and was projected to hit the $100 billion mark by 2000. This trend began with the oil booms of the 1970’s and 1980’s, but now Islamic banks are generally the product of private initiative in non-oil-exporting countries .
It is therefore imperative to study the growth of this sector in Pakistan and how it is affecting profitability of the banking sector since this has far reaching implications on its implementability and sustainability in the emerging financial services sector in Pakistan
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