STRENGTHS

1. Pakistan's second largest Islamic banking branch network

2. Islamic banking is an icon which attracts the attention of muslim population ( brand
image)
3. Comprehensive menu of truly Shariah-compliant products and services
4. Dedicated Shariah Supervisory Board comprising of world-renowned Shariah scholars
5. Dedicated department for development of Shariah-compliant products, research
andShariah audit.
6. Maximum population of Muslims is 97%
7. People are more concerned towards shariah standards
8. Islamic banks have been introduced by the public demand
9. A trade mark for Muslim countries including Pakistan

WEAKNESSES

1. Limited availability of human resources with Islamic banking knowledge

2. Limited opportunities for investment of surplus liquidity.
3. The employees especially the seniors have joint Islamic banks with the conventional
mind set which is not changed.
4. The employees of Islamic bank are not competent to operate the Islamic banking
products.
5. lengthy documentation
6. Islamic banks have not identified the marketing segmentation
7. Islamic banking do not conduct awareness programs for masses
8. The money market and the central bank do not offer Shariah compliant products to
Islamic bank which reduce their ability.
9. Except the Meezan bank all the other full flagged Islamic banks are weak financially as
well as their capacity.
10. The subject of Islamic banking are not the part of curriculum in schools and colleges &
universities in general.
11. The attitude of govt towards Islamic banking is indifferent.
12. The Islamic banking network has not been extended to the rural and remote areas.
Therefore the larger demand of Islamic financial services as assessed by SBP in 2014
remains untapped.
13. IB has not identified its target segments
14. Depositors are not paid due shares in profits.

OPPORTUNITIES

1. Growing local and international Islamic Banking market

2. Increasing awareness about Islamic financial services and demand for Shariah-
compliant products and services. ( increasing awareness at decreasing rate )
3. Significant potential for market penetration.
4. Micro financing is market niche which can be served effectively by the Islamic banks.
 5. Segmentation would help for more effective marketing e.g: religious convict segment in
KPK, FATA, BALOCHISTAN & SOUTH PUNJAB will be acquired without much cost.
6. Rapid growth of Islamic banking in Pakistan provides the opportunity to extend their
presence in other countries.
7. the Sakuke market provides good opportunity of raising funds in Islamic perspective
8. The Islamic banks can reach out to the rural and remote areas by developing suitable
products which can be marketed at much lesser cost then the urban sector. (Hub and
spokes branches)
9. Internationally recognized reputation of IB in Pak can help competing in the international
market, effectively.

THREATS

1. Conventional Banks entering Islamic Banking Market

2. Macro-economic challenges
3. Misconceptions and misunderstandings among the general public about Islamic banking
4. The Islamic banks has to follow conventional banks interest rate bench mark (kibor)
which imposes a threat about loss of customers.
5. peoples perception about Islamic banking is not positive
6. Peoples perception about Islamic banking is not positive.
7. the agency problem and the deposit system of Islamic banks possess the threat of
withdrawal risk
8. The incompetent staff of Islamic banks possess a threat therefore unable them to capture
a weak or smaller portion of the market.
9. Over burden and low paid staff possess a threat of discontentment and hence effects the
efficiency of the bank.
10. the controversial products like commodity Murabahah, organized Tabaruk, Running
Musharka, Bai Mu-ajjal of govt. Sakuke (OMO-OPEN MARKET OPERATION) earn
adverse reputation