Religious Scholars in Shariah Supervisory Boards: A Systematic Review of Effectiveness with Implications for Pakistan

Abstract

This systematic review explores the efficacy of religious scholars acting as Shariah Supervisory Boards (SSBs) within Islamic banking institutions and summarizes evidence on this issue based on 20 authenticated publications which were published between 2011 and 2026. The review evaluates the impact of the SSB composition, scholar features and governance framework on Shariah compliance and financial performance, with particular implications on the Islamic banking industry of Pakistan. It can be seen that whereas leading religious scholars help financial performance by the use of credibility and confidence-building, the over-concentration of scholars in various boards entails the possibilities of entrenchment and conflicts of interest. The review concludes that the 2025 Shariah Governance Framework of Pakistan that requires exclusive board service since 2028 and increases the requirements on independence is an important regulatory development. In the case of the Pakistani Islamic banking sector with assets amounting to PKR 8.3 trillion and having more than 25 million clients, proper SSB governance is essential to ensure Shariah integrity and confidence among the population. The article contains two detailed tables: Table 1 is a listing of all of the verified sources, with the bibliographic information and verification note; Table 2 is the synthesis of the SSB effectiveness factors by jurisdiction with special reference to Pakistan. The review adds to the interpretation of the religious agency in the management of the Islamic finance and offers practical measures to enhance Shariah oversight in Pakistan and the like markets.

Keywords: Shariah Supervisory Board, religious scholars, Islamic banking governance, Pakistan, Shariah compliance.