Abstract
In accordance with the Islamic law, Islamic banking is an activity, govern by Islamic rules and regulations and practically applicable through development of Islamic economics. The Islamic banking system (IBS) reveals encouraging system in the arena of financial system. This is competing with the established interest based conventional system (CBS). The Islamic Banking System (IBS) is becoming vital source of landing for individual and states. Through this system customers are very responsive in nature of availing the services to emerging Islamic Banking System (IBS) which is based on tenets of Islam and consistent with the human-nature that always preferred welfare, justice and transparent approach in their daily life and also justify the legitimate way of spending so has to contribute towards establishment of welfare society. This research highlights the growing trend of the emerging banking system in the Pakistan as well as around the world.