ASSIGNMENT

OF

Submitted to:
SIR USMAN
Submitted by:
AMIR BIN MUNIR

University of
Lahore
Mr Hamad rasool bhullar

• Sood is haram whether for business or for individuals

• The person who is involve in riba will be ruin in his life and also after
life
• Riba can make you mentally blind
• People are trying to make it halal
• There is big difference between riba and without riba
• The person jahanumi will never stop riba
• The soodi person will have be greater account in world but nothing
after death
• Instead the person who gives sakda god blesses him
• The riba person never leaves riba and never confess against god
• Riba is battle against islam
• Quran pak is strictly against against riba
• To eliminate riba we introduced Islamic banking
• You have to give back what you you have through riba if u want to
confess
• People think that Islamic and commercial banking are same but there
is big difference in both these banking

AL-BARH

• AL BARH is working for this purpose

• First conference held in 2006 in Lahore Iwan –e- Iqbal
• In 2008 from march to april they did conferences for the publicity of
Islamic banking
• These conference was done in 50 different countries
• In 2009 it did seminar in pak UAE, SAUDI ARBIC, KENYA .
• They also manage 250 programmed in these countries
• Media scholars and have done well for this purpose
• This success will give him confidence and they will work further for
this purpose
• More determination will be achieved by getting forward
 • The main object of al- barh ‘s efforts in this that people should know
his Islamic banking in reality
• Al- barh determination will carry on
• Al – barh journey is to organize more and more awareness and
achieve more milestones for Islamic banking
• The al – barh agenda that Islamic banking grow more

Mr Pervaiz

The object to grow Islamic banking and the main aspects are
• I-B technical aspects
• I-B reglious aspects
• Malaysia a large industry in which 12% shares purchased by public of
Islamic banking
• Malaysia has 1.36% growth in ten years
• In globally Islamic banking grow rapidly
• Basically we have set rules to develop expectation for IB and to help
IB
• New banks promote IB to the storm of SE (stock exchange )
• Nothing can achieved un less we provide strength
• SBP have regulatory infrastructure and policies but they still have
issues
1 Financial issue
2 Current issues of MCR
3 Tax authorities are silent about the point which are not cleared

There are differences between commercial and Islamic banking

Rules should be different for both commercial and Islamic banking. Same
rules should help each other

• Legal financial infrastructure required

• New polices should be developed and remove the vague one
• Some how risk is more and demand is lower
• First have to adopt then our market need to adopt IB
• At 3rd comes financial viability and sustainability goal
• In sector like SME and agriculture are the choices where we should
finance economic benefit of IB
• Equitable benefit shares can provide about at about 20% return

Mr Yaseen Anwar

• Thanks to organize Islamic banking all around the world

• At present there are about 1100 Islamic banking institutions which
have revenue about 1.3 million us dollar
• Legal supervisory institution to grow in Islamic industry
• State bank of Pakistan in 2001 had introduced Islamic banking
parallel system so that public will choose commercial and Islamic
banking
• Islamic banking network has 661 branches in Pakistan
• Pakistan is a long investing market which have population of about
170 to 180 million
• Low penetration in rural and semi rural areas of pakistans
• Pakistan is a large agriculture country and 20% of GDP comes from
this underserved area and for 65% people are in rural areas so they
promote Islamic banking in Pakistan
• In rural areas more Islamic banking is promotes and more branches
opened in these areas

State bank of Pakistan main key objects

1 Remove constraints between Islamic and commercial banking

2 Identify constraints
3 SBP’S fully receive Islamic banking system

SBP’S should build a system to provide a bank which

1 Avoid republication
2 Plan to improve regulatory further
3 Enhance global awareness in us
Dr khawaja amjad saeed

• As we know that versus of quran against interest

• Socialism , communication and capitalism these all have been failed
• Marketing of IB is a real thriller
• Historical run down growth suggest that 84% in only 3 product one of
them is banking
• According to one survey 14% of Pakistan professionals are in banking
• we need to take steps for IB
• perform as indicators “we as a nation must rise”

DR Nadeem M. FRIOZ

• We know that IB has potential but it has lack of growth

• Islamic product live need be clarified and should be given
opportunities
• We need to share our research together for IB
• As told earlier there is a difference between commercial banking and
Islamic banking
• In USA it is 1% to 2% banks which have IB department
• The main question is how does it work marketing is the answer
.marketing has to be integrated because it is the main key
• Step by step marketing of IB can satisfy customer
• E,N,G,AM,I,K,R
E = Environment
N= Need
G= Goods
A= Amount
M= Market
 I = Interest
K= Know how
R= Reward
• In the race of making money you have to back yourself
• Profit and loss are part of system
• We have t o create a market where customer can be satisfied with best
price
• In Asian countries it is low and in US it is more
• In US if you are looking for Islamic product the interest rate on loan
become higher and they take advantage while on other loan it is lower
• We have to market Islamic banking
• Mutual accommodation is also essential
• Environment needs to be target for marketing
• We have to market the IB in such a way that it becomes our need
• Goods comes next different policies should be adopted for IB
• A and M respectively show amount and market
• Next is the k the know how which is essential
• Reward is the final output if we arrange all these we will get the word
marketing

Mr Salimullah ullah (shariah compliance)

• Still people have misconceptions that IB does not exist .How this can
be eliminated
• Al huda is giving answer by creating differences between commercial
and IB
• There is a large capacity of IB industry launch of industry goals ( Al
huda is creating )
• So in this sense the stakeholders player growth has developed
• IB industry have large capacity

constraints in sharia

• outcome should not be haram

• sharia is not used as a legal device to allow haram
 • There is no condition in contract against it nature

Importance of sharia

• Distinguish IFIS from commercial banks

• Accountability to allah and to people
• Sharia compliance an issues of corporate governance
• Sharia compliance the basis of people choice against IFIS’S
• Sharia compliance a safeguard against loss reputation risk
• Compliance is a tool for growth and sustainability

Challenges in developing sharia compliance products

• The main stakeholder advisors , bankers, regulation , customer

• Conformity with laws , regulation and accounts policies
• Commercial viability
• Negative perception

MR tariq saeed

Agenda

• About Pak-Qatar Takaful Group

• Life is Full of Risks

• Conventional Insurance vs. Takaful

Pak-Qatar Takaful Group

Pak Qatar group

 Pak Qatar family

 Pak Qatar general

KEY FACTS: Pak-Qatar Takaful Group

 • First Takaful Group in Pakistan,
• The Group is sponsored by leading financial institutions from the
State of Qatar
• Paid-up Capital:
– Family Takaful : Rs. 533 million
– General Takaful: Rs. 307 million
– Total: Rs. 840 million

Major Achievements

• Received an “A” minus (having Stable Outlook) rating from JCR-

VIS Credit Co. while still in second year of operations
• Have Re-Takaful arrangements with some of the best Re-Takaful
global companies in the world
• Are present in 14 cities having 25 branches
• Have a trained sales force of 900+ strength in the market in less than
3 years or operations
• Have on board 300+ corporate clients in less than 3 years of
operations
• Have declared 15% Surplus for Individual customers for the
financial year ended 31 December 2009, in second year of operation

Life is Full of Risks

Risk Mitigation
Since the beginning, people have tried to protect themselves from risks and
resulting losses

What is Risk?
Risk is the potential danger that threatens to harm or destroy an object, an
event or a person

Risk Mitigation in Islam

Is the concept of risk mitigation permissible in Islam?
This very concept is not only lawful/permissible in Islam but is in fact
encouraged

The Conventional Insurance Process

The customer pays premiums in exchange for claim (at the time of risk
actualization) from the Insurer

Shariah’s Stance on Conventional Insurance

Shariah has no objections as to the concept or objectives of insurance ; it
only has reservations with the way it is being practiced

Shariah’s Stance on Conventional Insurance

Point # 1

It is a sales-purchase contract. In Shari’ah terms it is called Aqd Muawaza

Point # 2

Premiums belong to the company

Point # 3

Insurance company pays the claims from its own pockets

Point # 4
Premiums are invested in all kinds of investment avenues, including Riba-
based businesses

Definition of Takaful

The word “Takaful” originates from Arabic language.

Its root word is “kafala” which means “to guarantee”.

Through inflection it changed to “takafala” which means “to help each
other” or to “jointly guarantee each other.”

The Concept of Takaful

Takaful is a community-pooling system in which participants contribute

their savings into the common fund to help those who need it most in times
of financial difficulty

It is based on the concept of brotherhood and mutual solidarity.

EXAMPLES: The concept of Takaful is manifested in the system of Baitul

Maal, the cooperative societies and the joint-family set ups etc

Takaful Process

Takaful Operator creates the Waqf Fund or the “Taburru Fund”

Participants contribute their premiums/contributions on the basis of
“Taburru” into this Waqf Fund
The Waqf Fund pays the claims

Key Points on Takaful Process

Point # 1
Contributions are paid on the basis of Taburru. In Shariah such a contract is
called Aqd Taburru

Point # 2
Contributions are credited to the Waqf Fund; Operator acts as Wakeel

Point # 3
The Waqf Fund pays the claims

Point # 4
Contributions are invested only in Shari’ah Compliant investment avenues

Point # 5
An independent Shariah Board supervises business activities for Shariah
compliance

Fundamental Differences between Conventional Insurance & Takaful

Conventional Insurance Takaful

PREMIUMS BELONG CONTRIBUTIONS CREDITED TO

TO COMPANY TABURRU FUND

COMPANY PAYS
TABURRU FUND PAYS
THE CLAIM THE CLAIM

RIBA-BASED HALAL INVESTMENT PROFIT

PROFITS

Micro finance

Microfinance Products
A commonly held view among observers of poverty alleviation
programs across the globe is that provision of “appropriate” microfinance
products and services to the poor in a sustained manner helps bring down
poverty levels. It is therefore, important to have a good understanding of
what
the poor need in terms of financial services.

Major Issues in Microfinance

Microfinance and Islamic finance have much in common. Both
emphasize the good of society as a whole. Both advocate entrepreneurship
and
risk sharing and believe that the poor should take part in such activities.
Both
focus on developmental and social goals. Both advocate financial inclusion.
Both involve participation by the poor. There are however, some points of
difference between the two

Shariah Compliance of Contracts

Islamic microfinance products and services are essentially in the nature
of contracts. All contracts in Shariah must be free from certain forbidden
elements. A brief overview of relevant norms is provided below