Islamic finance in Pakistan revolutionizes risk sharing, shaping global financial landscape.
Islamic finance in Pakistan primarily relies on the mark-up principle rather than profit and loss sharing. The study explores why this is the case and discusses the benefits and drawbacks of both approaches. While mark-up allows for easier asset acquisition, profit and loss sharing aligns financiers' interests with project outcomes. The research suggests that integrating the strengths of both principles could enhance Islamic finance in the market.