According to a report by the State Bank of Pakistan, lack of awareness about the Islamic banking and shortage of bank branches are the main hurdles in the way of the Islamic banking system in the country. Despite the fact that there is overwhelmed acceptance of the Islamic banking among the people, the volume of deposits so far is mere less than 10 percent as compare to the conventional banking system. There is a need to enhance the number of banks in the urban and rural areas of the country to bring the volume of the Islamic banking to 15 percent.According to the report, a majority of the people supportsthe enforcement of Islamic banking in the country. However, only 23 percent consumers opt for the Islamic banking due to their religious beliefs while 74 percent want to shift to the Islamic banking system in principle. However, 69 percent people believe that unavailability of Islamic banking in their areas was a hurdle in the enforcement of the system. Until December 2013, the total branches of the Islamic banks were 1304, half of which were situated in Lahore, Karachi, and Islamabad. At least 83 percent consumers do not understand the Islamic banking services while 47 consumers do not know the Sharia-based banking rules.
Pakistan is a Muslim majority country and there are a handsome number of people who see the western banking system in conflict with their religious beliefs. Many people even do not want relationship with those who work in conventional banks and regard their income as illegal. But the Islamic scholars have also played very little role in creating awareness about the benefits of the Sharia-based banking system. Interest-based economy is prohibited in Islam and it is the government which is capable of overhauling the present banking system and regulating it in line with the Islamic principles.