Lack of vision and political will has contributed to the slow growth of Islamic banking and finance in Pakistan. The Government of Pakistan in a way has given the whole Islamic banking and finance to State Bank of Pakistan. The people in the ministry of finance, planning commission etc. have no idea of Islamic banking and finance, which means that there is no ownership of Islamic finance and banking at the government level. Once the government decides to use Islamic banking and finance as a tool for bringing more foreign investment and capital, it can bring home a lot of Islamic capital. Though there is already a lot of investment coming into Pakistan from the Islamic financial institutions. The likes of Dubai Islamic Bank, Al Baraka Bank, Bank Islami and others have foreign ownerships. If the government comes up with a vision of 2020 for Islamic banking and finance and starts pitching Islamic Republic of Pakistan as a friendly state for Islamic banking and finance, a number of institutions, governments and countries would like to come here.
Source:
http://www.pakistantoday.com.pk/2011/11/islamic-banking-and-finance/