Presentation of Islamic Banking Seminar in Afghanistan organized by AlHuda Centre of Islamic banking and Economics

2. ISLAMIC MICRO FIANANACE PROGRAM MURABAHA NATIONAL RURAL SUPPORTPROGRAM NRSP Khyber Pukhtoon khwah Region PAKSITAN Presentation by: Niaz Ali Khan Program Officer NRSP Pakistan

16. Program Total updates 93.3 % Recovery rate Rs 17929 Average Purchase per case 142.6 M Total Portfolio 792 Total Murabaha clients 12 Program area (union councils) Detail Particulars

17. Sector wise Disbursement Enterprise : Consumer goods, House material, raw material, equipment, carts, Small machineries, tools, Windows and doors, Bricks, Cements, T.iron, Motor vehicle tyres, and several other items. NRSPMARDAN 4.10 222 Live stock 142.6 792 Total 2.22 M 122 Agri, Inputs 7.94 448 Enterprises Amount cases Sectors

18. Sector wise purchases

19. Risk in Mitigation in Murabaha Risks Risk Mitigations Shariah complaint Murabaha Shariah adviser monitor Murabaha activities, staff training, COs work shops and meetings Client needs cash All purchases are done through procurement officer and price is paid to suppliers Through order or crossed Cheque. Client refuse to purchase Wada Murabaha (Promise) Risk of Losses Immediate supply to client Payment to Supplier Order cheque, cross cheque in presence of client Default Risk Religious Motivation, Social Collateral, Clear role of guarantors, Death of Client Islamic Insurance (Takaful) under process