 In this segment, we shall look at Islamic banking and finance in Pakistan. Pakistan is an important player in the global Islamic financial services industry. And it is important to look at what is happening in Islamic banking and finance from an Islamic financial viewpoint. There is a long history of Islamic economic thought in Pakistan, although the actual history of Islamic banking and finance in Pakistan may not be that long. However, there is recognition of Islamic banking and finance in the context of Pakistan in the global financial markets. When we refer to the history of Islamic banking and finance in Pakistan, the reference goes to the intellectual thought. Although, as of now, Pakistan is not the number one player in global Islamic financial services industry. However, there is a definite recognition of the contribution of Pakistan in terms of intellectual thoughts to Islamic banking and finance. A number of scholarly articles and research papers were written by Pakistani economists or economists with Pakistani background living elsewhere. So, the intellectual thought developed by Pakistanis, they are considered as an important development in Islamic banking and finance worldwide. And these thoughts, we would come to them in a few minutes. Demand for Islamic economic system in Pakistan has been there right from the beginning when Pakistan was set up in 1947 or when India was divided into Pakistan and India. There is a history of a failed experiment with Islamic banking in Pakistan, and I would refer to it in a minute or so. Then we have some developments taking place in the 1980s. Relatively, no development taking place in the 1990s. And of course, I would be spending some time on the current state of affairs with reference to Islamic banking and finance in Pakistan. Intellectual thoughts. When we say that Pakistan played an important role in terms of intellectual development of Islamic banking and finance, we basically refer to the articles, books and research papers written by Ulama, Sharia scholars coming out of Pakistan or in the Indian subcontinent of the region. So in the books, even Alama Iqbal, for example, he had this vision of having renaissance of Islam through an economic system. An Islamic economic system was a part of Alama Iqbal's dream. So literature existed on Islamic banking and finance. A very long time ago, even before the partition, Muslim writers, they wrote about an Islamic economic system. Then a generation of economists called Islamic economists, they started writing about an Islamic banking and finance model. These economists, they are known as Islamic economists, a very significant number of the first generation of Islamic economists actually happened to be Pakistanis. Demand for Islamic economic system, it remained a political phenomenon right in the 1950s, in the 60s, 70s, 80s and to some extent I should say that this demand continues. So whenever there was a demand for an Islamic economic system, implicitly there was a demand for Islamic banking and finance as well. So because of this pressure on government and other political institutions, there was a constitutional change brought in the 1950s, 1956, when the objectives resolution was passed where there was a general reference to supremacy of Sharia and that allowed for later developments to be in favor of Islamic banking and finance. Now I must refer to a failed experiment that happened in Karachi in the 1960s. Although this was a failed experiment, but it had huge implications for development of Islamic banking and finance later in Pakistan and of course in other parts of the world as well. This was an attempt to set up an Islamic cooperative bank in Karachi which short lived within six months. The bank was asked to shut down because it did not fulfill certain regulatory requirements. The real development in the context of Islamic finance happened in the 1980s when the then military regime decided to introduce Islamic economic system with a focus on Islamic banking and finance. As part of that change in thinking and policy, Mudarba companies and Mudarba flotation and control ordinance 1980 was promulgated which gave rise to quite a number of Mudarbas set up in the country. Those Mudarbas proved to be successful and later on they had implications for the development of Islamic fund management industry in Pakistan. So in the 1980s Mudarbas they became very popular. Actually there was one point in time when there were over 50 Mudarbas operating in Pakistan and the framework governing Mudarbas was very sophisticated. This is a requirement for a Mudarba to operate in Pakistan to be floated on the stock exchange. Now there are about 20 plus Mudarbas some of which are very successful and of course profitable as well. The 1990s however proved to be a barren decade for Islamic banking and finance in Pakistan. The judgment given by the Supreme Court in favor of Islamic banking and finance was challenged by the government or by the governments during that time period and we found that in the 1990s there was not much of a development with reference to Islamic banking and finance in the country. Since 2000 onwards we find a lot of developments taking place in Pakistan with reference to Islamic banking and finance. In 2002 for example Mizan Bank was set up as a fully-fledged Islamic bank. Now as a result of that pioneering setting up of a retail Islamic bank we have five fully-fledged Islamic banks operating in Pakistan soon to be six when facile bank would be fully converted to an Islamic bank by the middle of next year. Other conventional banks 17 of them they offer Islamic banking services to what is known as Islamic window operations. There is a vibrant Islamic fund management industry and we have the carful companies operating in the country and the government of Pakistan and other corporates they continue to issue Sukuk Islamic bonds and strengthening Islamic capital markets in the country. We do not have a fully-fledged Islamic microfinance bank as yet. However Islamic microfinance services are also offered by some specialized institution. So in a nutshell Islamic banking and finance industry in Pakistan is very comprehensive. There are Islamic banks Islamic capital market is doing quite well. We have the carful companies. We have Islamic microfinance and of course we have the government of Pakistan as well as corporates issuing Islamic bonds also known as Sukuk.