Practice of banking is as ancient as progress of mankind found its way from barter economies towards market economy and price mechanism. Currently banks have amassivepart in determining the economic fate of any state. Nowadays having a strong banking system is very important for all countries. A selection criterion of Islamic banking clients in Pakistan is examined under this study. All the customers of Islamic banks in Pakistan are the population of the study whereas the sample of the study is the Islamic banking customers in Lahore. Convenient sampling technique was applied to choose sample for this study. Data was collected through Questionnaire. Data is analyzed through descriptive statistics and independent sample T test using SPSS v-16.Cronbach Alpha was found satisfactory which was discovered to find reliability of the data. The results of Independent Sample t-test has examined there is no significance difference in the selection criteria for Islamic banking among the customers on the basis of Gender. The results show that people select Islamic banks because it deals in low cost products and services as compared to conventional banks. Also it is obvious from the results that people choose Islamic banks because it delivers better and vide range of products as compared to conventional banks. The results have also explored that Islamic banks provide all banking facilities at competitive rates.
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