Islamic banking industry in Pakistan has been growing since its inception back in 2001. The assets and deposits of Islamic banking industry 11.9% and 13.7% respectively of overall banking industry by the end of September 2017. However, still being a small portion in overall banking industry, Islamic banks make efforts to come up with innovative products which on one hand must Shariah compliant as well as competitive with conventional products. This study discusses a specific product namely "running musharakah" which is proposed by Shaykh Taqi Usmani in 1998 for the financing of working capital and operational needs based on the concept of Shirkah al-aqd. This idea is adopted by Meezan Bank Limited in 2008 and gradually has become popular in Islamic banking industry of Pakistan ...