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In recent years, Shariah Governance for both Islamic financial institutions (IFI) and practitioners have been increasingly popular. A robust Shariah governance structure is essential for IFI's due to their fast growth across the world, as it guarantees that all stakeholders are treated fairly, while also improving transparency and responsibility. This study explores the question ‘‘what are the major indicators/components of Shariah Governance in Islamic financial institutions?’’. The face-to-face interviews are employed to achieve the research objectives. The central bank and Islamic banks of Pakistan were contacted for this study. According to the findings of the study, Shariah refers to laws, regulations, guidelines, objectives, and instructions that are exclusively based on Shariah principles. Shariah Governance, according to this study, is a technique for validating Shariah compliance throughout the entire operation of Islamic banks. SG is essential for Islamic banks to follow Shariah principles, certify Shariah compliance, and regulate the functioning of IFI's. Following the data analysis, Nvivo concluded that there are six distinct roles that SGs play in the IFI’s. These roles include, efficacy of Shariah governance, knowledge and competence of BOD/SSB, BOD/SSB role, Shariah advisory committee role and Shariah audit function. This study will be of significant value to national and international regulatory agencies, as it explains why Islamic banks and financial institutions require a good supervisory governance (SG). Diverse stakeholders need a strong SGF that can attract their attention and interest in order to safeguard and meet their interests, expectations, and demands.
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