In Salam, the seller undertakes to supply specific goods to the buyer at a future date in exchange for an advanced price fully paid at the spot. The payment is at the spot but the supply of purchased goods is deferred. Purpose of use: This mode of financing can be used by modern banks and […]

Hadiths e-Qudsi ”Allah Subhan-o-TaIIah has declared that He will become a partner in the business between two Mushariks until they indulge in cheating or breach of trust (Khayanah).” In another Hadiths-e-Qudsi, it is stated: “Allah’s hand is with both the partners unless any one of them indulges in cheating and when any one of them […]

The concept of Diminishing lsharakah Another form of Musharakah, developed in the near past, is the ’Diminishing Musharakah’. According to this concept, a financier and his client participate either in the joint ownership of a property or equipment or in a joint commercial enterprise. The share of the financier is further divided into a number […]

The term khiyar refers to an option or right of tic buyer & seller to rescind a contract of sale. There are five Khiyars in a contract which are as follows: Khiyar-e-Shart (Optional condition) At the time of sale, the buyer or seller can put a condition that either party has an option to rescind […]

Sale (Bai) is commonly defined in Shari’ah as “the exchange of a thing of value by another thing of value with mutual consent”, For example, “the sale of a commodity in exchange for cash”. Valid Sale (Bai Sahih) A sale becomes valid if the following elements are present along with all other necessary conditions: Contract […]

A valid Sale has four essential elements Contract of Transaction (Aqd) 1.1 Offer & acceptance (Ijab-o-Qobool) The term “Offer” means that one person proposes to either sell his commodity to another person or buy from him and “Acceptance” means that the person who has been offered gives his approval of the proposal. Offer and acceptance […]

We will start our discussion of the Islamic Contract with three terminologies of the Islamic Jurisprudence which are pertinent to be understood at the outset of this chapter. They are: Unilateral Promise (Wa’ da) Bilateral Promise (Muwa ’Adah or Muahaidah) Contract (Aqd) Unilateral Promise (Wa’da) It refers to a unilateral undertaking or promise extended by […]

The buzz words these days are ‘shared prosperity’, whether it is the promise of what ‘blockchain technology’ will bring in or the World’s Bank vision for a poverty less world. Shared prosperity is one in which when an economic development takes place, it is reflected in all segments of the society and is not just […]

In the name of Allah the entirely merciful the special merciful. All praise belongs to Allah who is Lord of all the Worlds. Grains, particularly wheat is one of the most important necessity for human beings. When gold and silver coins or currency did not exist in ancient times, people used to trade these though […]

مجموعی بینکنگ ڈپازٹس میں 14فیصدحصہ غیر سودی اسلامی بینکوں ،جبکہ 86فیصد حصہ مروجہ سودی بینکوں کا ہےلیکن گذشتہ حکومتیںاپنی ضروریات کے لیے 97.65فیصد تمویل ، سودی قرض بانڈزکی شکل میں مروجہ سودی بینکوں کے ذریعے حاصل کرتی آرہی ہےاور اسلامی طریقہ تمویل سے صرف 2.35فیصد کے حد تک استفادہ کیا گیاہے۔)(Central Government Debt repot Jun […]