GREEN ISLAMIC FINANCE AND SUSTAINABLE INVESTMENT INTENTION AMONG BANKING CUSTOMERS IN PAKISTAN

Abstract

While the Islamic banking industry is rapidly growing in Pakistan, the behavioral side of the transition toward climate-resilient and sustainable finance remains insufficiently understood. This study develops an extended Theory of Planned Behavior (TPB) model, informed by Maqasid al-Shariah, to examine sustainable investment intention among banking customers in Pakistan. For manuscript development and statistical demonstration, a synthetic dataset of 400 cases was generated from the proposed questionnaire; these cases do not represent responses collected from real participants. The model examined green Islamic finance awareness, environmental concern and perceived Shariah compliance as antecedents of attitude, with attitude, subjective norms and perceived behavioral control predicting sustainable investment intention. The synthetic measurement model showed satisfactory reliability and convergent validity, with Cronbach's alpha ranging from 0.817 to 0.932, composite reliability from 0.892 to 0.952, and AVE from 0.733 to 0.832. All hypothesized structural relationships were supported in the synthetic demonstration. Perceived Shariah compliance showed the strongest effect on attitude (beta = 0.409, p < 0.001), while attitude was the strongest predictor of sustainable investment intention (beta = 0.484, p < 0.001). Attitude also mediated the effects of green Islamic finance awareness, environmental concern and perceived Shariah compliance on sustainable investment intention. The framework provides a transparent manuscript-development example that can later be tested with ethically collected field data from Pakistani banking customers.