The paper aims to review the development of Shariah standards in Pakistan and the role of Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). The document review method has been taken into consideration. The circulars, notifications, rules, laws and regulations issued by the regulators of Islamic finance in Pakistan, such that State Bank of Pakistan (SBP) and Securities and Exchange Commission of Pakistan (SECP) were collected. Since 2010, SBP has adapted twenty AAOIFI Shariah standards and issued three separate standards and SECP adapted seven. Both regulators have made extensive changes/amendments/clarifications in the adapted AAOIFI Shariah standards. SBP has amended 261 clauses of the AAOIFI out of 833; however, further research is needed to determine if these changes violate the spirit of AAOIFI Shariah standards or are acceptable. SBP has also issued separate Shariah standards and rulings on various matters, despite the availability of corresponding AAOIFI Shariah standards; therefore, a comparative study is needed to explore similarities and differences with AAOIFI corresponding standards. Moreover, there is also a conflict between both regulators regarding adaptation of AAOIFI Shariah standards which might be due to different Shariah governance frameworks of both regulators that also requires further consideration to explore. This review suggests potential areas for future research and will benefit Shariah board members, scholars, advisors, and auditors. Moreover, it also highlights the recommendations for the regulators and industry to streamline Shariah standards in Pakistan.
Keywords: Shariah standards, AAOIFI, Pakistan, Islamic banking, Islamic Finance
Corresponding Author: Muhammad Bilal Zafar, bilalezafar@gmail.com

Industrial development not only proved to be the forerunner of revolutionary development in financials, it also opened new avenues in Islamic Financial fiqh. In fact, the industrial revolution has created new challenges for Islamic fiqh, which need to be addressed. Now the world has become a global village and business has expanded from a small scale to very large scale in the form of multinational companies. Thus, people from different geographical backgrounds, religious affiliations and fiqh interact with each other. Therefore, due to this mutual trade among traders having different fiqh backgrounds, sometimes face issues due to different fiqhi background. Jurists have difference of opinion in financial matters like Imam Abu Ḥanīfa, Imam Mālik, Imam Shāfiʿī and Imam Ahmad bin Hanbal have different opinions on permissibility or impermissibility of different financial matters. Therefore, it is a challenge to do business and financial dealings with persons having different followings. Many fiqh bodies (institutions) worldwide are working to resolve such issues. These institutions set the standard for Islamic Financial Institutions (IFIs) by addressing such issues by combining different fiqh on predefined parameters. Therefore, the objective of this study is to critically discuss and evaluate the talfīq with respect to financial matters in light of the resolutions of International Islamic fiqh Academy. Being qualitative in nature, this study uses content analysis to achieve its objective.. To resolve the issues faced in financial matters, abandoning one fiqh and adopting another is called "talfīq". Different bodies are working for this in the world and locally in Pakistan as well. They are all working as Sharīʻah standard setting bodies, for all aspects of the life of the Muslim ummah, including financial matters. One of the standard setting bodies is International Islamic Fiqh Academy Jeddah. Since its inception, the academy has passed resolutions on hundreds of important financial matters, most of which adopted a consolidation approach. Some of these important financial issues are discussed in this paper. The purposes of this academy which is giving a ruling in financial matters, are also discussed in detail. A critical review of istiṣnāʿ (It refers to a contract under which an item is purchased before it comes into existence and an order is given for its manufacture.), as a binding contract and penalty clause in case of delayed delivery is particularly presented in this paper.
Keywords: Talfiq, Islamic financial Institutions, International Islamic Fiqh Academy, Penalty, Istiṣnāʿ
Corresponding author: Mufti Syed Sabir Hussain, mufti.sabir@mcbislamicbank.com

Pakistan has set a goal of making all its banking assets sharia-compliant by 2027, and it could fail to meet this target. This research conceptually explores how “soft power” could expedite the process of conversion towards Islamic banking. Soft power, among other factors, includes good governance, strategic use of media, and educating society. In this case, educating and raising awareness on the role and benefits among non-users of Islamic banking is also included. Issues such as political and economic instability, ineffective governance, lack of rule of law, corruption and extremism are affecting Pakistan’s soft power which in turn, affect the perception of Pakistan’s religiosity, the cornerstone of Islamic banking. This may, therefore, impact the adoption of and conversion to Islamic Banking. There is scarce research on consumer behaviour with Islamic banking products. Soft power could be used to influence consumer behaviour to increase the adoption of Islamic banking and thereby, increase the conversion rate of more banks from convention towards Islamic banking using a pull factor and increased demand. Pakistan is otherwise considered a hard-power country because of its military strength. It is a country among others that have negative perceptions and image problems. This article highlights how Pakistan as a country, through its soft power potential and the strengths it possesses. A case study approach is utilised showing negative perceptions of different countries such as Qatar, Saudi Arabia and Malaysia and how, even with negative perceptions, these countries still hold a good rank in the soft power index and also rank higher than Pakistan in the Islamic Banking assets and number of consumers.
Keywords: Islamic banking, soft power, religiosity, consumer behaviour.

Islam is a religion which provides guidance for a complete lifestyle. It guides Muslims to adopt good and avoid bad in every aspect of life. In other words, Halal is liked, and Haram is disliked. Islam has outlined rules for Muslims that they should consume products which are prepared through Halal methods. In the modern era, the trends in production and consumption of these products have drastically changed due to technological advancements. On the other hand, Pakistan is a country with a majority Muslim population. Thus, Pakistan is a vast Market for Halal commodities. With Muslim manufacturers, Muslim traders, and Muslim consumers, it is naturally expected that Pakistan should act as the role model for the global halal industry. But unfortunately, Pakistani share in the global halal industry is not significant. Regulatory framework of Halal Industry in Pakistan provides the foundation for the development of the Halal industry where the structural challenges and required reforms are the key issues. This research has highlighted the importance of Halal and the role of those organizations which collectively shape the regulatory framework of Pakistani Halal industry. It also explained the current structure of halal industry in Pakistan. Finally, this research has explored challenges and solutions in the regulatory framework that hinders the growth of Halal industry in Pakistan.
Keywords: Halal, Halal food Industry, Challenges, Halal Pakistan, regulatory framework