How Islamic banking differs from conventional banking

Islamic banking operates on principles that set it apart from conventional banking, challenging common misconceptions about the system. In this episode, finance scholar Dr. Zeeshan Ahmed explains how Islamic finance avoids interest (riba), uses asset-backed financing, and relies on trade, leasing, and profit-sharing instead of conventional loans. The discussion also explores whether countries like Pakistan can realistically transition to a fully Shariah-compliant financial system and clarifies the key differences between Islamic and conventional banking practices.