Abstract

Purpose: This paper examines the impact of Islamic finance on inclusive growth in Pakistan. While financial development is widely recognized as a driver of economic growth, through efficient capital allocation, investment promotion, and expanded credit access, conventional financial systems have often been associated with rising inequality and financial instability. Islamic finance, grounded in principles of risk-sharing, ethical investment, and asset-backed transactions, presents a potentially more inclusive and stable alternative that aligns financial intermediation with real economic activity.

Keywords

Islamic Finance,Inclusive Growth,Financial Development,