Islamic banking continues to gain popularity in Pakistan as total assets of Islamic banking industry grew by Rs 148 billion during the quarter April to June, 2018 and were recorded at Rs 2,482 billion by end June, 2018. According to the State Bank of Pakistan (SBP)’s latest data, deposits of Islamic banking industry also witnessed growth of Rs117 billion during the period under review and reached to Rs 2,033 billion by end June, 2018. Market share of Islamic banking assets and deposits in the overall banking industry was recorded at 12.9 percent and 14.8 percent, respectively by end June, 2018. On profitability side, Islamic banking industry recorded profit before tax of Rs15 billion by end June, 2018 compared to Rs 12 billion in the same quarter last year. The network of Islamic banking industry consisted of 21 Islamic banking institutions; 5 full-fledged Islamic banks and 16 conventional banks having standalone Islamic banking branches by end June, 2018. During the period under review, branch network of Islamic banking industry increased to 96 branches. This addition was mainly due to de-merger of 90 branches of MCB Bank Limited and their merger into MCB Islamic Bank Limited. Branch network of Islamic banking industry was recorded at 2,685 (spread across 111 districts) by end June, 2018. The number of Islamic banking windows operated by conventional banks having standalone Islamic banking branches stood at 1,284 Asset base of Islamic banking industry registered a quarterly growth of 6.3 percent (Rs148 billion) during the quarter April to June, 2018 and were recorded at Rs. 2,482 billion, compared to Rs 2,334 billion in the previous quarter. This growth in assets was contributed by net financing and investm0ents that recorded a quarterly growth of 3.1 percent (Rs 39 billion) and 4.8 percent (Rs 26 billion), respectively during the period under review. Market share of Islamic banking industry’s assets in overall banking industry’s assets was recorded at 12.9 percent by end June, 2018. The share of net financing and investments in total assets (net) of Islamic banking industry stood at 53.3 percent and 22.4 percent, respectively by end June, 2018. Bifurcation of assets among full-fledged Islamic banks and Islamic banking branches of conventional banks reveals that assets of full-fledged Islamic banks witnessed a quarterly growth of 6.9 percent (Rs 93 billion) during the period under review to reach Rs 1,452 billion. Assets of Islamic banking branches of conventional banks grew by 5.6 percent (Rs 55 billion) and their assets base reached to Rs1, 030 billion by end June, 2018. The share of full-fledged Islamic banks and Islamic banking branches of conventional banks in overall assets of Islamic banking industry stood at 58.5 percent and 41.5 percent, respectively by Investments (net) of Islamic banking industry reflected an increase of 4.8 percent (Rs 26 billion) during the period under review and were recorded at Rs 555 billion by end June, 2018 compared to Rs 529 billion in the previous quarter. Published in Daily Times, September 4th 2018.