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Challenges in islamic microfinance by ms. farida tariq

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Challenges in islamic microfinance by ms. farida tariq

  1. 1. International Conference onIslamic Microfinance Organized By : CENTER OF ISLAMIC BANKING & ECNOMICSHeld At:
  2. 2. Challenges in Islamic MicrofinanceBy: Mrs. Farida Tariq, CEO CWCD, Chairperson IMFN
  3. 3. Financial Literacy Awareness about the modes of Islamic Finance in  General Public  Government Departments  Courts of Law
  4. 4. Source of Funds Availability of Shariah Compliant Sources of Funds. Hesitation in adapting to Shariah Compliant Contracts Fear of entering into Partnership (Musharaka, Mudaraba) agreements with Microfinance Institutions  Rate of Returns cannot be fixed therefore the fear of return on investments remains
  5. 5. Legal structure of Pakistan Hindrance in implementation of Islamic Finance Products in essence  Company’s Ordinance Section 42 refrains an institution to enter into trading whereas the true essence of Islamic Financial Products is Trading
  6. 6. Standardization of Islamic FinancialProducts Implementation of a product must be standardized in all practicing organizations for better understandability and faith of the borrowers Minimum standards for practicing Islamic Microfinance must be set
  7. 7. Shariah Audits/Appraisals of Products andProcedures Firms should exist which would certify the products and procedures of Islamic Microfinance Institutions to be Shariah Compliant which would be recognized by all national and international organizations.
  8. 8. Thank You CENTER OF ISLAMIC BANKING & ECNOMICS Head Office: 192- Ahmad Block, New Garden Town , Lahore, Pakistan Ph: +92-42-35913096-8, 35858990, 38407850 Fax: +92 -42-35913056 E-mail : info@alhudacibe.com Web: http://www.alhudacibe.com

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