Challenges and issues of green banking in Islamic and traditional banks of Pakistan

This study investigates the current challenges and issues in adopting green banking activities Pakistan’s sector, especially Islamic banks, due to their close link with ethical banking. A total of 26 interviews have been conducted (19 officers seven heads Shariah department) via a semi-structured questionnaire. The reveals eight factors priority order, causing hindrance implementing Pakistan. These are lack awareness, knowledge skills, culture adoption change, pressure, incentives, legal power, culture, infrastructure. Among four areas, interviewees identified environmental risk management as most challenging area. Most banks demanded revision guidelines power incentives. is first literature that identifies problems orders reasons after-effects. supports Jeucken’s Chapra’s models, respectively. will help formulate policy for revising laws further achieving Maqasid-e-Shariah banks.