admin, Author at Usmani & Co. Pvt. Ltd.

31 Mar 22

Is Investing in Shares/Stocks allowed or forbidden in Shariah?

A common question that, many of us ask is whether it is allowed to invest in stocks or /shares. As we go deeper into that thought other questions also come up such as, What makes a stock halal? Which stocks are particularly Halal and whether we should invest in those? What does stock screening mean? […]

And Allah has permitted trade and forbidden Riba

22 Dec 21

Part 1: Prohibition of Riba in Islam | Islamic Finance Series

The financial services sector is the most important sector of the modern economy. The financial services sector provides opportunities for households to choose the best combination of investments in terms of return on investment, duration and security. It also provides opportunities for businesses and governments to fund their activities by raising surplus funds. The concept […]

27 Nov 21

Adhering to Medina’s Islamic Values in present day Pakistan

After being in Makkah for 13 years following first revelation, Prophet (ﷺ) migrated to Medina. He instilled in Medina’s economy, Islamic Values with respect to Usury and Interest which Islamic Finance Institutions are adhering to follow till today. Prior to Prophets’ migration, the marketplaces were monopolized by the Jews who took heavy interest (sood) from […]

‘Are those who have knowledge and those who have no knowledge alike? Only the men of understanding are mindful.’ (Quran, 39:9) Treasure, they say, is either in the form of precious metals, gems, or other valuable objects. But all these forms of treasure can be stolen and often decreases with time so we cannot really call it a lifetime asset. There is, however, another form of treasure, which cannot be stolen, increases by time, and is a lifetime asset as well. It is, knowledge. It gives you a high return on investment of your time.

08 Nov 21

Knowledge – a roadmap to hunt the treasure

‘Are those who have knowledge and those who have no knowledge alike? Only the men of understanding are mindful.’ (Quran, 39:9) Treasure, they say, is either in the form of precious metals, gems, or other valuable objects. But all these forms of treasure can be stolen and often decreases with time so we cannot really […]

27 Oct 21

Key differences between Islamic banks & conventional interest based banks

ISLAMIC BANKS (IB) CONVENTIONAL BANKS (CB) At Conceptual & Socio-Religious level IB are not money lending institutes but they work as a trading/ investment house. IB work under the socio-religious guidelines that prohibit charging and paying interest and avoid all impermissible transactions like gambling, speculation, short selling & Sale of debts & receivables. IB do […]

04 Oct 21

IJARAH

“Ijarah” is a term of Islamic fiqh. Lexically, it means “to give something on rent”. In Islamic jurisprudence, the term “Ijarah” is used for two different situations: In the first place, it means “to employ the services of a person on wages given to him as a consideration for his hired services.” The employer is […]

23 Aug 21

RIBA FREE ECONOMY IS A REAL GATEWAY TO NAYA PAKISTAN

Imran Khan, the Prime Minister of Pakistan lit the candle on July 26, 2018 by saying that he is very keen on making Pakistan the first Islamic state of Madinah, to which he refers to as Naya Pakistan in the legacy of Muhammad Ali Jinnah’s vision. He outlined his vision for “Naya Pakistan” emphasizing the […]

20 Apr 21

ISLAMIC FINANCE & OBJECTIVES OF SHARIAH

Finance and money make such a huge part of our life on individual and societal level. There are two common financing infrastructures being practised worldwide: Conventional Finance and Islamic Finance. Riba (Interest) is the backbone of Conventional Finance. Although, the Western world has designed infrastructure of Conventional Finance, they do believe it is a greedy […]

07 Apr 21

Welcoming Ramadan with the Realization of SDGs through Islamic Finance

The Islamic social finance ecosystem – that includes Zakat (obligatory charity), Sadaqat (voluntary charity), Waqf (endowment), Qard al-Hasan (benevolent loan), Kafalah (guarantee), Takaful (co-operative insurance), and not-for-profit microfinance institutions in compliance with the principles of Islamic law (Shari’ah) – is well suited to support the United Nations’ Sustainable Development Goals (SDGs) in Pakistan, which are […]

11 Feb 21

Istijrar

Istijrar means purchasing goods time to time in different quantities. In Islamic jurisprudence, Istjrar is an agreement where a buyer purchases something from time to time; each time there is no offer or acceptance or bargain.