Student Name

Arsalan AhmedFollow


Master of Science in Islamic Banking & Finance


Department of Finance

Faculty/ School

Faculty of Business Administration (FBA)

Date of Submission

Spring 2022


Dr. Irum Saba, Associate Professor & Program Director MS-IBF, Department of Finance


In the current economic situation, banking industry of Pakistan is experiencing immense growth in the country. This research revolves around the Islamic Banking Industry of Pakistan. There are twenty two Islamic banks including five full fledge Islamic banks while remaining seventeen operates through Islamic banking window of conventional banks. The foremost purpose of this analysis is to evaluate the possible elements of service quality which significantly impacts on consumers’ perception towards acceptance of Islamic banking practices in Pakistan. For this reason, service quality is involved as an explanatory variable to measure how the consumers’ perception is influenced towards using of Islamic banking and its practices. The model of this research is based on SERVQUAL model which represents service quality and consists of six multidimensional service excellence elements: Tangibility, Reliability, Responsiveness, Assurance, Competence, and Pricing & Services.


Structured close ended questionnaires are filled by the consumers who are using Islamic banking services and belongs to different fields like working individuals, bank employees, self-employed, entrepreneurs, businessmen, university students, and housewives. The total number of respondents of this research consists of 231cases. Multiple linear regression analysis is used to test the significance of the study.


Findings of this study has shown positive link with service quality and consumers’ perception towards Islamic banking practices in Pakistan. The findings also showed that consumers’ perception towards Islamic banking practices in Pakistan is pricing and services intensive which is followed by Competence, and Responsiveness.

Document Type

Restricted Access

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