Islamic Finance and Empowerment of Women: A Case Study of Pakistan

Abstract

United Nation set seventeen Sustainable Development Goals for all its member countries to achieve them by 2030. Pakistan is also a member of UN and is required to achieve these SDGs by 2030. Literature on SDGs pointed out that Pakistan is working on these goals especially on 05 basic goals i.e. Education, Health, Poverty, clean water &sanitary and Gender equality. One of the SDGs addresses the Gender Equality with focus on women empowerment. There found some hurdles i.e. environment, financial and religious in achieving these and other goals. Islamic financial institutions are not playing expected role in empowering people especially females to achieve these goals. This study discusses the gender gap in accordance with Sharia and analyzes the women empowerment through Islamic Finance. For this, the study provides brief discussion on Islamic thoughts on the gender gap and Women’s empowerment and examines how women can be empowered through Islamic Financial Institutions. The data for the study is qualitative in natures and acquired through survey questionnaire. The research question set for the study is ‘By how IFIs fulfill the needs in terms of equal opportunities for women, and to analyze the impact of IFIs environment on women’s empowerment, if a country establishes an IFI in its territory either for students, bank’s employees, religious women who are engaged in Madrasas or households. The findings of the analysis interpret that, women empowerment leads gender equality if regulator help IFIs to mitigate the problems and hurdles come under way. The establishment of separate IFI for women with the development of specific rules for betterment of women may help women to get jobs that also comprise the female Sharia scholars in Sharia board, consequently increased the numbers of women in banking industry.