The article explores how the rate of return affects Islamic finance in Pakistan. It compares the rates of Islamic financial institutions with those of conventional ones. The study aims to understand how different financial organizations follow Islamic laws that prohibit interest rates. Islamic finance is growing rapidly and is becoming a significant part of the financial services sector. The research shows that Islamic finance is becoming more competitive with traditional banking, as it offers alternatives to interest-based systems. Muslims are increasingly turning to Islamic finance to meet their financial needs without relying on interest-based methods.