AN EMPIRICAL ANALYSIS OF THE INFLUENCE OF ISLAMIC FINANCE ON PAKISTAN’S ECONOMIC GROWTH FROM 2015 TO 2024

Islamic finance has emerged as a significant contributor to economic growth in various countries, including Pakistan. This study examines the relationship between Islamic finance and economic growth using recent data and empirical evidence. The research employs econometric techniques, including cointegration and Granger causality tests, to determine the direction and strength of the relationship between Islamic financial development and economic performance in Pakistan. The findings indicate a bidirectional relationship, suggesting that the growth of Islamic finance positively influences economic development while economic expansion fosters the demand for Islamic financial services. The study highlights policy implications and suggests ways to enhance the contribution of Islamic finance to sustainable economic growth.