Steps for Islamization of banking and financial system of Pakistan were started in 1977-78. Pakistan was among the three countries in the world that had been trying to implement interest free banking at comprehensive/national level. But as it was a enormous task, the switchover plan was implemented in phases. The legal framework of Pakistan’s financial and corporate system was amended in early 1980; however, incredible growth has been viewed in Islamic banking from 2002 to 2009. On January 2002 licenses has been issued for commencement of first Islamic bank and at present there are 6 full-fledged Islamic Banks with almost 514 branches all over Pakistan.