An Efficiency Analysis of Conventional and Islamic Banking in Pakistan

The current estimation is involved to regulate the efficiency analysis between Islamic banking and conventional banking by reference to GDP growth, total reserve as dependent variables, and total assets, total deposits, total investment, and total liabilities as autonomous variables. Time series data is collected from 1990 to 2019, Islamic banking has increased facts and lending in Pakistan. Most people believe in Islamic banking philosophy as it is Islamic shariah based with full reserves, total assets, total deposits, total investment, and total liabilities, Considered the descriptive variables independent variable in which the coefficient of the total assets, the total deposit had a highly significant impact on GDP growth rate. Pakistan had a dynamic role regarding the banking sector when assets of the banking sector increases and GDP Growth also increased in Pakistan. Autoregressive lagged estimation model and economic effectiveness on the supply side and Islamic banking relationship in Pakistan, GDP growth is positive and significant