This research paper examines the ideological contestation between opponents and proponents of Islamic Banking in Pakistan. Major part of the research is based on Shari'ah and jurisprudential study of 'modes of financing' in Islamic Banks. It explores the agreements and similarities between conventional and Islamic Banking along with analysis of the fact that the existing system in Islamic Banks is based on illegal tricks and subterfuges while at the same time apparently there seems to be some fractional support to this system from Islamic Law as well. Nevertheless, the real Shariah objectives for implementation of these laws have been severely trampled in practice.
Therefore, whether there are interest-free banks or conventional interest banks, they all are in fact disassociated with trade or any kind of business and they primarily deal in money. This is the opinion of Ahl al-Hadith and majority scholars of Hanafi school of thought in Pakistan, although foundation of such business institutions is the need of the Islamic society where genuinely on the basis of Shari'ah principles, Musharakah and Mudarabah could be undertaken.