Islamic banking in Pakistan based on ‘Haraam’ formula

Islamic banking is thriving in Pakistan for the past 15 years. Credit goes to Meezan Bank Limited for opening the doors of a full-fledged Islamic banking in Pakistan since 2002. But the most pathetic aspect of this Islamic banking is that it is flourishing on ‘Haraam’ (us-Islamic) formula of calculating profit on almost every product that is offered to the customers. This ‘Haraam’ formula is the Karachi Inter-Bank Operations Rate (KIBOR) that every Islamic bank in Pakistan is using indirectly to work out the cost and rental (profit) of products that is offered to the customers for short and long-term lending under the pre-text of Islamic or Halaal banking in the country.
The officials of different Islamic banks openly admit that they have no other choice but to follow the KIBOR rate indirectly to calculate the rate of rental (return) on financing of different products. Interestingly, a banker working with a famous Islamic bank in Karachi, contacted Manzar Naqvi, Executive Editor of The Financial Daily and tried to convince him to get car on financing saying that the KIBOR rate is very low and bank’s overall charges are also affordable for financing. Manzar Naqvi, however, flatly turned down the offer after hearing that the Islamic bank is using “Haraam” formula in car financing. This is not the only example, whenever the bankers working with the Islamic banks are asked about the rate of financing/rental of car or other products after six months, they simply reply that it would depend on the rate of KIBOR at that time. The bankers openly admit that the KIBOR-based financing is un-Islamic, but they say that they don’t have any alternate way of calculating the rate of profit/rental.
Interesting to note is that the commercial banks (which we believe is un-Islamic banking) have developed the Karachi Inter-Bank Operations Rate (KIBOR) for years to calculate the rate of return on their financing to all types of customers and clients. The irony is that instead of developing their own ‘Halaal’ framework, the Islamic banks in Pakistan are following the KIBOR formula from the day one and still they believe that the Islamic banking that they are promoting in Pakistan is all ‘Halaal’.
Some of our religious clerics have declared the existing mode of Shariah-based banking ‘Halaal’, but some others believe that this Islamic banking is not 100 percent pure and it needs to be made all-Halaal.
The State Bank of Pakistan and all the Islamic Banks have engaged religious scholars and experts of Islamic banking to oversee the affairs of Halaal banking in the country. But they appear indifferent to the Islamic banks tilt towards KIBOR in the Islamic banking in the country since 2002. In other words, after a lapse of 15 years, the Islamic banks in the country are still unable to find out ‘Halaal’ mode of financing by giving up KIBOR-mindset. How would they justify this mode of financing on the Day of Judgment? How are they satisfying their conscience on this issue?
Who will bell the cat? These are the questions that strike in the mind of the people who believe that the Pakistani Islamic banks must give up pursuing ‘Haraam’ banking formula and evolve a ‘Halaal’ mechanism to make this banking pure and true to the spirits of the Shariah.
A senior retired banker said that internationally the Islamic banks are using London Inter-Bank Operations Rate (LIBOR) which is followed by the commercial banks and in Pakistan the KIBOR is being pursued by Islamic banks indirectly. He said that a difference between Islamic and commercial banks is that the Islamic banks issue credit against assets and they have developed Shariah-based products of financing. He, however, admitted that the Islamic banks have no alternate option except the KIBOR and they (the Shariah-based banks) should diversify their banking and mode of financing.
Meanwhile, during July-Sept quarter of 2017, the assets of Islamic banking industry (IBI) have increased by Rs. 48 billion and amounted to Rs. 2,083 billion compared to Rs. 2,035 billion in the previous quarter. Deposits of Islamic banking industry were recorded at Rs. 1,729 billion by end September, 2017compared to Rs. 1,720 billion in the previous quarter. Market share of Islamic banking assets and deposits in overall banking industry was recorded at 11.0 per cent and 13.7 percent, respectively by end September, 2017. Profit before tax of Islamic banking industry was registered at Rs. 17.6 billion by end September, 2017 compared to Rs. 12.1 billion in the same quarter last year. Other profitability indicators including return on assets (before tax) and return on equity (before tax) were recorded at 1.2 percent and percent, respectively.
The network of Islamic banking industry consisted of 21 Islamic banking institutions; 5 full-fledged Islamic banks and 16 conventional banks having stand-alone Islamic banking branches by end September, 2017. Branch network of Islamic banking industry stood at 2,368 branches by end September, 2017 and the Province/Region wise breakup of branches shows that Punjab and Sindh accounted for 47.2 percent and 29.7 percent share respectively, in overall Islamic banking industry’s branch network. In terms of cities, 54.6 percent branch network of Islamic banking industry is based in five big cities (Karachi, Lahore, Rawalpindi, Islamabad and Faisalabad).
The number of Islamic banking windows operated by conventional banks having standalone Islamic banking branches was recorded at 1,275 by end September, 2017. Assets: set of Islamic banking industry witnessed growth, whereas, in contrast, investments (net) of Islamic banking industry declined by 2.3 percent during the review quarter Market share of Islamic banking industry’s assets in overall banking industry’s assets increased to 11. percent by end September, 2017 compared to 11.6 percent in the previous quarter The share of net financing and investments in total assets (net) of Islamic banking industry stood at 49.7 percent and .2 percent, respectively by end September, 2017 (see section below on Investments and Financing for details). Bifurcation of assets among full-fledged Islamic banks and Islamic banking branches of conventional banks reveals that assets of full-fledged Islamic banks witnessed quarterly growth of Rs. 23 billion during the review quarter to reach Rs. 1,233 billion compared to Rs. 1,210 billion in the previous quarter.
Likewise assets of Islamic banking branches of conventional banks witnessed quarterly growth of Rs. 25 billion and were recorded at Rs. billion compared to Rs. 825 billion in the previous quarter. The share of full-fledged Islamic banks and Islamic banking branches of conventional banks in overall assets of Islamic banking industry was 59.2 percent and 40.8 percent, respectively by end September, 2017.

TFD

xosotin chelseathông tin chuyển nhượngcâu lạc bộ bóng đá arsenalbóng đá atalantabundesligacầu thủ haalandUEFAevertonfutebol ao vivofutemaxmulticanaisonbetbóng đá world cupbóng đá inter milantin juventusbenzemala ligaclb leicester cityMUman citymessi lionelsalahnapolineymarpsgronaldoserie atottenhamvalenciaAS ROMALeverkusenac milanmbappenapolinewcastleaston villaliverpoolfa cupreal madridpremier leagueAjaxbao bong da247EPLbarcelonabournemouthaff cupasean footballbên lề sân cỏbáo bóng đá mớibóng đá cúp thế giớitin bóng đá ViệtUEFAbáo bóng đá việt namHuyền thoại bóng đágiải ngoại hạng anhSeagametap chi bong da the gioitin bong da lutrận đấu hôm nayviệt nam bóng đátin nong bong daBóng đá nữthể thao 7m24h bóng đábóng đá hôm naythe thao ngoai hang anhtin nhanh bóng đáphòng thay đồ bóng đábóng đá phủikèo nhà cái onbetbóng đá lu 2thông tin phòng thay đồthe thao vuaapp đánh lô đềdudoanxosoxổ số giải đặc biệthôm nay xổ sốkèo đẹp hôm nayketquaxosokq xskqxsmnsoi cầu ba miềnsoi cau thong kesxkt hôm naythế giới xổ sốxổ số 24hxo.soxoso3mienxo so ba mienxoso dac bietxosodientoanxổ số dự đoánvé số chiều xổxoso ket quaxosokienthietxoso kq hôm nayxoso ktxổ số megaxổ số mới nhất hôm nayxoso truc tiepxoso ViệtSX3MIENxs dự đoánxs mien bac hom nayxs miên namxsmientrungxsmn thu 7con số may mắn hôm nayKQXS 3 miền Bắc Trung Nam Nhanhdự đoán xổ số 3 miềndò vé sốdu doan xo so hom nayket qua xo xoket qua xo so.vntrúng thưởng xo sokq xoso trực tiếpket qua xskqxs 247số miền nams0x0 mienbacxosobamien hôm naysố đẹp hôm naysố đẹp trực tuyếnnuôi số đẹpxo so hom quaxoso ketquaxstruc tiep hom nayxổ số kiến thiết trực tiếpxổ số kq hôm nayso xo kq trực tuyenkết quả xổ số miền bắc trực tiếpxo so miền namxổ số miền nam trực tiếptrực tiếp xổ số hôm nayket wa xsKQ XOSOxoso onlinexo so truc tiep hom nayxsttso mien bac trong ngàyKQXS3Msố so mien bacdu doan xo so onlinedu doan cau loxổ số kenokqxs vnKQXOSOKQXS hôm naytrực tiếp kết quả xổ số ba miềncap lo dep nhat hom naysoi cầu chuẩn hôm nayso ket qua xo soXem kết quả xổ số nhanh nhấtSX3MIENXSMB chủ nhậtKQXSMNkết quả mở giải trực tuyếnGiờ vàng chốt số OnlineĐánh Đề Con Gìdò số miền namdò vé số hôm nayso mo so debach thủ lô đẹp nhất hôm naycầu đề hôm naykết quả xổ số kiến thiết toàn quốccau dep 88xsmb rong bach kimket qua xs 2023dự đoán xổ số hàng ngàyBạch thủ đề miền BắcSoi Cầu MB thần tàisoi cau vip 247soi cầu tốtsoi cầu miễn phísoi cau mb vipxsmb hom nayxs vietlottxsmn hôm naycầu lô đẹpthống kê lô kép xổ số miền Bắcquay thử xsmnxổ số thần tàiQuay thử XSMTxổ số chiều nayxo so mien nam hom nayweb đánh lô đề trực tuyến uy tínKQXS hôm nayxsmb ngày hôm nayXSMT chủ nhậtxổ số Power 6/55KQXS A trúng roycao thủ chốt sốbảng xổ số đặc biệtsoi cầu 247 vipsoi cầu wap 666Soi cầu miễn phí 888 VIPSoi Cau Chuan MBđộc thủ desố miền bắcthần tài cho sốKết quả xổ số thần tàiXem trực tiếp xổ sốXIN SỐ THẦN TÀI THỔ ĐỊACầu lô số đẹplô đẹp vip 24hsoi cầu miễn phí 888xổ số kiến thiết chiều nayXSMN thứ 7 hàng tuầnKết quả Xổ số Hồ Chí Minhnhà cái xổ số Việt NamXổ Số Đại PhátXổ số mới nhất Hôm Nayso xo mb hom nayxxmb88quay thu mbXo so Minh ChinhXS Minh Ngọc trực tiếp hôm nayXSMN 88XSTDxs than taixổ số UY TIN NHẤTxs vietlott 88SOI CẦU SIÊU CHUẨNSoiCauVietlô đẹp hôm nay vipket qua so xo hom naykqxsmb 30 ngàydự đoán xổ số 3 miềnSoi cầu 3 càng chuẩn xácbạch thủ lônuoi lo chuanbắt lô chuẩn theo ngàykq xo-solô 3 càngnuôi lô đề siêu vipcầu Lô Xiên XSMBđề về bao nhiêuSoi cầu x3xổ số kiến thiết ngày hôm nayquay thử xsmttruc tiep kết quả sxmntrực tiếp miền bắckết quả xổ số chấm vnbảng xs đặc biệt năm 2023soi cau xsmbxổ số hà nội hôm naysxmtxsmt hôm nayxs truc tiep mbketqua xo so onlinekqxs onlinexo số hôm nayXS3MTin xs hôm nayxsmn thu2XSMN hom nayxổ số miền bắc trực tiếp hôm naySO XOxsmbsxmn hôm nay188betlink188 xo sosoi cầu vip 88lô tô việtsoi lô việtXS247xs ba miềnchốt lô đẹp nhất hôm naychốt số xsmbCHƠI LÔ TÔsoi cau mn hom naychốt lô chuẩndu doan sxmtdự đoán xổ số onlinerồng bạch kim chốt 3 càng miễn phí hôm naythống kê lô gan miền bắcdàn đề lôCầu Kèo Đặc Biệtchốt cầu may mắnkết quả xổ số miền bắc hômSoi cầu vàng 777thẻ bài onlinedu doan mn 888soi cầu miền nam vipsoi cầu mt vipdàn de hôm nay7 cao thủ chốt sốsoi cau mien phi 7777 cao thủ chốt số nức tiếng3 càng miền bắcrồng bạch kim 777dàn de bất bạion newsddxsmn188betw88w88789bettf88sin88suvipsunwintf88five8812betsv88vn88Top 10 nhà cái uy tínsky88iwinlucky88nhacaisin88oxbetm88vn88w88789betiwinf8betrio66rio66lucky88oxbetvn88188bet789betMay-88five88one88sin88bk88xbetoxbetMU88188BETSV88RIO66ONBET88188betM88M88SV88Jun-68Jun-88one88iwinv9betw388OXBETw388w388onbetonbetonbetonbet88onbet88onbet88onbet88onbetonbetonbetonbetqh88mu88Nhà cái uy tínpog79vp777vp777vipbetvipbetuk88uk88typhu88typhu88tk88tk88sm66sm66me88me888live8live8livesm66me88win798livesm66me88win79pog79pog79vp777vp777uk88uk88tk88tk88luck8luck8kingbet86kingbet86k188k188hr99hr99123b8xbetvnvipbetsv66zbettaisunwin-vntyphu88vn138vwinvwinvi68ee881xbetrio66zbetvn138i9betvipfi88clubcf68onbet88ee88typhu88onbetonbetkhuyenmai12bet-moblie12betmoblietaimienphi247vi68clupcf68clupvipbeti9betqh88onb123onbefsoi cầunổ hũbắn cáđá gàđá gàgame bàicasinosoi cầuxóc đĩagame bàigiải mã giấc mơbầu cuaslot gamecasinonổ hủdàn đềBắn cácasinodàn đềnổ hũtài xỉuslot gamecasinobắn cáđá gàgame bàithể thaogame bàisoi cầukqsssoi cầucờ tướngbắn cágame bàixóc đĩaAG百家乐AG百家乐AG真人AG真人爱游戏华体会华体会im体育kok体育开云体育开云体育开云体育乐鱼体育乐鱼体育欧宝体育ob体育亚博体育亚博体育亚博体育亚博体育亚博体育亚博体育开云体育开云体育棋牌棋牌沙巴体育买球平台新葡京娱乐开云体育mu88qh88

Leave a Reply