Recent trends in economical and financial situation of different countries, where economies based on conventional banking systems are facing a lot of problems and at the same time a tremendous growth has been observed in Islamic financial system, it can be concluded that Islamic financial system provides the perfect pathway for socio-economic development in a country. Pakistani government should realise the importance it has, over interest-based economy, and the state-owned institutions should not just stop resisting change towards Islamic system but they should also promote it as a central agenda item of development plans. SBP and other institutions should have a separate department, the experts over there will research on Islamic financial system and will provide the solutions of the newly arise economic problems based on Sharia’ compliant rules.