Potential of Takaful in Pakistan: A Transformational Paradigm

This research identifies Takāful as an important financial instrument and its crucial role in the development of the country that is evident from its recent developments in Malaysia, Middle East and even non-Muslim countries like Sri Lanka. The need is to create awareness of Takāful concept among general public and to eliminate misconceptions related to prevalent concept of conventional insurance. Takāful has emerged as an alternative solution to present insurance dilemma. The success of Takāful business lies in its very nature of being Sharī’ah compliant. This system is based on eternal Sharī’ah laws where no one gets undue advantage at the cost of others. Rather, it is a fair and transparent system free from exploitation and injustice. Recent growth of Takāful across the world clearly indicates its promising future for Pakistan. Transformation of existing system is truly compatible with the needs and beliefs of the people of Pakistan who constitute more than 150 million population of Muslim community. Growth and potential of Takāful can play a significant role in economic development of the country while enhancing its share in the world insurance market.