This study determines the effect of announcements of re-composition of Islamic Index, commonly known as PSX-KMI All Share Islamic Index of Pakistan Stock Exchange, on the turnover and returns of included and excluded firms. This study is warranted because of the growing interest of individual and institutional investors in Shari'ah compliant stocks. The quantitative approach has been applied using secondary data of companies that are included and excluded due to re-constitution of PSX-KMI All Share Islamic Index surrounding four announcements. The Event Study approach is used to calculate abnormal turnover and abnormal returns surrounding the announcement period. In the second stage, regression analysis is conducted. The study finds insignificant impact of re-composition announcement of KMI-All Share Index on abnormal turnover and abnormal returns following inclusion and exclusion of companies. The underlying reason of insignificant evidence contradicts ethical screening theory followed by investors but can be attributed to non-standardization of stock screening criteria amongst asset management companies in Pakistan, mainly because of their Shari'ah scholars' interpretation of Islamic laws according to different schools of thought, hence the space of Shari'ah-compliant securities for trading & investment varies from one institutional investor to another. This study contributes to the body of knowledge related to market reaction on regulatory intervention (i.e., announcement reaction) and its impact on the prices and volumes of listed Shari'ah compliant stocks. As per the authors' best knowledge, this is the first empirical study examining the effect of announcements of re- composition of PSX-KMI All Share Islamic Index on the volume and price of included and excluded companies in Pakistan.
Keywords: PSX-KMI All Share Islamic Index, Index re-composition, Event study, Abnormal turnover, Abnormal returns.

Training programs are vital for the professional development of employees in every organization. Pakistan's Islamic banking sector is experiencing unprecedented growth, accelerated by the State Bank of Pakistan's mandate for full conversion to Islamic banking by 2027. This transformation is creating massive opportunities for both current and future professionals in the field. However, this rapid expansion brings an urgent need for comprehensive training programs to develop three core competencies: technical banking skills, essential soft skills, and in-depth Sharia compliance knowledge. Only through effective training can employees properly implement Islamic financial principles, maintain operational excellence, and drive organizational success. As the sector prepares for exponential growth, investing in employee development today will determine which institutions lead Pakistan's Islamic finance revolution tomorrow. The future belongs to banks that prioritize building a skilled, motivated workforce capable of navigating both the technical and ethical dimensions of Sharia-compliant finance. This case study is more focused on the development of Sharia knowledge and skills among the employees by using PDCA methodology. Before the implementation of PDCA in Islamic banks, the proficiency of Islamic banking knowledge and compliance was ordinary among the employees, resulting in an increase in costs and inefficiency. The results revealed that implementation of PDCA has improved Islamic banking knowledge and skills among the employees significantly. Even though it belongs to an Islamic bank, the learning points are very important and beneficial for multiple organizations and individuals. The pre and post testing has developed better understanding of the learners and the training becomes an investment rather than an expense. Furthermore, the PDCA based improvements are also found very similar to the action research-based plan, implement, observe, and reflect in the literature which not only contribute to the research but also to the practices of society.
Keywords: Islamic Banking, Training Improvements; PDCA; Action Research

The regressive nature of indirect taxation in Pakistan elevates poverty and poses a significant challenge to its reduction efforts. These types of taxes, levied on consumption of goods and services, disproportionality affect low-income households, who spend a large portion of their income on essential commodities. As a result, indirect taxes erode disposable income, limit excess to necessities and become a cause of exacerbating poverty and widening income inequality. The first objective of this paper is to examine the effect of indirect tax on exacerbating poverty. The second objective is to discuss Shari’ah legitimacy of taxes and examine the Shari’ah appraisal of Indirect Taxes. In addition to these, we also discuss how indirect taxes disproportionately affect the impoverished and result in more poverty. In order to gain the first objective, empirical approach was adopted with descriptive analysis. Graphical presentation was used to elaborate on the results of the quantitative data. For the second objective, critical analysis of literature review techniques and descriptive statistics were used to elaborate the results. The finding of this study provides compelling evidence of a significant positive correlation between indirect taxes and poverty levels. Our analysis demonstrates that an increase of indirect tax burden exerts a substantial negative impact on livelihood, which results in exacerbating poverty. The increase in poverty is also a cause of socio-economic disparities. The findings underscore the urgent need of comprehensive tax reforms. The effective tax reforms, particularly a well-designed decrease in indirect tax, can significantly affect poverty. The reduction in taxes may lead to better access to necessities which may result in improving the living standards of the poor community. This research recommends an analysis of Pakistan’s indirect tax system through the lens of Shari’ah calls for reforms that align with the principles of justice, equality and well- being of the deprived community. Simultaneously, Shari’ah compliant reforms would advocate for strengthening direct taxation on wealth and income, ensuring that the affluent contribute to the society. It also fosters a system where the tax burden is shared according to the ability and financial position of the people.
Key words: Indirect tax, Poverty, Shari’ah, Direct tax, income inequality, Equal distribution of wealth

Access to reasonably priced and environment-friendly housing financing continues to be a major problem particularly in countries with the majority Muslim populations where adherence to Islamic financial principles is mandated. This study looks at two often used Islamic financing techniques, Murabaha and Diminishing Musharakah, and contrasts them in the effort to provide practical solutions for sustainable housing finance. This study adopts a comparative descriptive research design which allows for the systematic comparison between the two different Islamic financing models within the context of sustainable housing finance. Supported by descriptive and inferential statistical studies, a cross-sectional survey of financial institutions and customers looks at the relative performance of the models regarding cost, risk-sharing, sustainability, customer happiness, and operational simplicity. The results show that Murabaha mirrors traditional debt agreements and impedes efficient risk sharing even if it is easy and has lower operating risks. On the other hand, Diminishing Musharakah has shown better results in terms of affordability, equity sharing, customer happiness, and long-term feasibility despite its higher administrative complexity. According to the finding from the regression analysis, financing models have a significant impact on the outcomes of sustainable housing finance; the variance in promoting affordability and socio-economic welfare was higher with Diminishing Musharakah. Thus, it is recommended that Islamic financial firms should prioritize equity-based financing models and reduce operational challenges through client education initiatives and digitization. Additionally, regulatory agencies are urged to encourage the implementation of risk-sharing frameworks in order to promote financial inclusion and socioeconomic progress. This research advances the empirical evidence on sustainable Islamic finance that supports Diminishing Musharakah for environment-friendly and ethical housing development in accordance with international Sustainable Development Goals (SDGs).
Keywords: Islamic Finance, Sustainable Housing Finance, Murabaha, Diminishing Musharakah, Risk-Sharing Models

This study investigates the potential of Islamic financial instruments—such as Zakat, Waqf, Qard al-Hasan, and Islamic microfinance—as effective tools for poverty reduction and inclusive socioeconomic expansion. Through a qualitative literature review supported by thematic analysis, the research draws from both classical Islamic texts and modern case studies across Muslim-majority countries. Finding’s highlight the effectiveness of Islamic finance in endorsing financial inclusion, reducing income inequality, and supporting Sustainable Development Goals (SDGs). However, challenges such as inadequate awareness, regulatory inconsistencies, and institutional limitations hinder its broader impact. The paper recommends that integrating the ethical framework of Islamic finance with contemporary financial systems can lead to a more just, inclusive, and sustainable economic model. Policy recommendations accentuate financial literacy, regulatory standardization, and hybrid models that amalgamate Islamic and conventional practices to enhance outreach and effectiveness.
Keywords: Zakat, Waqf, Qard al-Hasan, Islamic microfinance, Sustainable Development Goals (SDGs)