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Islamic Banking happens to be one of the fastest growing sectors in the Global Banking Industry. With the growth of the Islamic Banking and it's various departments, there has been a significant development in the Islamic Banking Trade Finance products. Letters of Credits have always played a very important role in the Trade Finance Departments. However, the structure of Letter of Credits in case of Islamic Banking is somewhat different than the convention letters of credit. An attention-grabbing research study in this context is to find out the issues that are faced during the progressive implementation of Islamic Letters of Credit.