Islamic Microfinance: An Overview and Prospects in Pakistan

This paper will highlight the significance importance of the Islamic microfinance working in Pakistan as well as across the world. In 2007, the Great economic damage the global economy of the world including United States, European Union as well as Asia, it made the researcher to study about the alternate system in the replacement of Conventional Financial System, after that study and research they recognized that there is no concept of interest in Islamic Financial System, it is totally based on asset-based system, this recognition shift their area of interest from conventional financial system to Islamic financial system. Islamic financialSystem plays a significant role in economic growth of a country through accumulation of deposits and providing the plate form of financing to speed up economic activities. In the last two decades, the traditional microfinance is replaced by the Islamic microfinance in Pakistan as well as in the whole world. This paper will highlight the working methodology of Islamic microfinance models and institutions that how these Islamic microfinance institutions working asan interest free sector in Pakistan and in the world. The paper is also highlighting the difference between conventional micro financing and Islamic micro financing that what are the models and functions that differs the Islamic micro financing from the traditional micro financing.

Economic Cooperation Organization As a Regional Organization: Problems and Prospects

Regionalism emerged in international politics after the World War II, but the end of Cold War has significantly impacted on global politics and regionalism. It is a new phenomenon and nowadays it is difficult to find a country that is not a member of at least one regional organization. Even some of them are the members of more than one regional organizations and international organizations. Economic Cooperation Organization (ECO) as a regional organization established by Pakistan, Iran and Turkey in1985, but after the Cold War Central Asian countries also joined the Organization and ECO expanded with a new situation. In this study to better explain and analyze regionalism in ECO, nefunctionalism, interdependence and liberal intergovernmentalism theories are examined and used together in the context of globalization. It seems that non of theory alone can explain the perfect situation of the region. The advance of technology and information revolution have considerably accelerated globalization and vice versa. Consequently interdependence amongst nations also has been increasing. Such conditions have affected to rise regionalism as a requirement of nations to promote their interests through regionalism particularly after the Cold War. Thus globalization is a main driver of regionalism, however there is interaction between globalization, regionalism and nation-states. The nation-states can manage to take the best advantages of globalization age and remain as an important actor. In globalization age, economic interdependence between the members on the one hand and interdependence between the regions and countries on the another hand have considerably affected on the shape and progress of ECO. Common historical heritage, culture, social and many other factors also have impacted on ECO. Geo-economic and geostrategic locations of ECO also have had important role in the establishment of the organization. The region is very rich in oil and gas which are the main factors of development. Globalization, growth of technology and economic development of EU, China and India''s have impacted on the requirement of energy. These countries have been suffering from shortage of energy and ECO can help them out their energy crisis. Moreover ECO members are also dependent on manufacturing and technology of advance countries like EU, China and other countries. Thus although the process of regionalism in ECO is not fast like EU, interdependence in energy, trade and many other factors within the region and outside the region can drive an push integration not only in the region but also with the other regions and countries.