This article discusses Islamic Banking System and its mode of leasing in the light of the objectives of Shari’ah. It
explores that the objectives behind the introduction of Islamic finance and banking system were the elimination of
capitalist banking interest, exploitation of poor segment of the society and the establishment of an economic system
which may lead to sustain a balance economic order and social justice. In this context, it intends to analyze the
mode of leasing provided by Islamic Banking system in the light of the objectives of Shari’ah and discloses that
although Islamic Banking system is based on the principle of mudarbah, musharkah and Ijarah and deals with the
customers in that context, yet apparently, the effects of these transactions are not much different from capitalist
modes due to same consequences and effects of these transactions. It thus, provides a comparative analysis of the
issue, i.e., mode of leasing at both Islamic and capitalist Banks. It argues that a common man can not avail Islamic
financing/ leasing if he lacks financial resources. If a poor person tries to purchase something by way of ijarah
through Islamic Banking finance, he does not find any difference in the payment of the total cost between capitalist
mode of leasing and Islamic mode of ijarah. Hence, this article concludes that although Islamic financing achieved
a remarkable development among the Muslims, yet there is a need to revise the policy and system of Islamic
financing in the light of the objectives of Shari’ah. It also concludes that the mode of leasing provided at Islamic
Banks does not accomplish the objectives of its establishment which is public interest. At present, this system is
unable to assist the poor segment of the society or to provide ease to them.