Whether we are close to interest free banking system in Pakistan

The answer is very simple. No with another No. Only rhetoric and rhetoric with no legislation, clarity and awareness among people are the things right now where we have seen them a decade back.
An often overlooked area within Islamic finance is the establishment of comprehensive national interest free banking systems as has been tried in Iran and Sudan as well as with lesser extent in Pakistan.
Interest free banking is a narrow concept denoting a number of banking instruments or operations, which avoid interest. Islamic finance and banking is the more general term which covers not only the avoidance of interest-based transactions but also the participation in achieving the goals and objectives of an Islamic economy. It is for this reason why estimates of the size of the Islamic finance market tend not to include the entire banking systems of Iran and Sudan as well as of Pakistan's.
Iran is supposed to be the World's only Completely Riba Free Banking System. However it is also showing some signs now to create a cushion for conventional banking. There is now no limitation for the activities of foreign banks in Iranian free economic zones. They may also open branches and representative offices in mainland or hold 40% shares of an independent unit. It is also believed that the Iranian Interest-Free banking law has simply created the context for legitimizing usury or riba. In reality all banks are charging their borrowers a fixed pre-set amount at a rate of interest that is approved by the Central Bank at least once a year. No goods or services are exchanged as part of these contracts and banks rarely assume any Commercial Risk. High value collateral items such as real estate, commercial paper, bank guarantees and machinery eliminate any risk of loss. In case of defaults or bankruptcies, the principal amount, the expected interest and the late fees are collected through possession and or sale of secured collaterals. Another country with interest Free Banking System i.e. Sudan has now moved From Complete Riba Free to Dual System. In Pakistan a Decades Old Work is in Progress. Banks and educational institutions are doing nothing right now but using their social networks and buildings by distributing awards and holding seminars to attract money. 
Two basic steps are highly essential in this respect i.e. definition of Riba from judiciary side in clear terms and comprehensive legislation on Islamic Banking and Finance from the government side. Let us see whether we all are sincere to do that as the situation is highly complex on this front.