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Outline of Presentation ,[object Object],[object Object],[object Object],[object Object],[object Object]
Islam and Shariah Islam Aqidah (Faith & Belief) Shariah (Practices & Activities) Akhlaq (Morality & Ethics) IBADAT (Man to God Worship) Muamalat (Man to Man Activities) Political Activities Economic Activities Social Activities Banking & Financial Activities
Sources of Fiq’h in Islam  (Islamic Finance) ,[object Object],[object Object],[object Object],[object Object]
Basic Difference between Islamic and Conventional Microfinance ,[object Object],MFI Client Money  Money + Money(interest) IMFI Client Islamic Microfinance Goods & Services money
Riba in Quran ,[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Human Financial Needs Fulfillment of Financial Needs  Own Capital Others’ Capital Equity Financing Debt Financing
PRODUCT TREE Islamic Microfinance  Modes Trade Based  Modes Partnership Based  Modes Rental Based  Modes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Industry Progress in Pakistan
Encourage asset-based financing and based on commodity trading & Services Based on money trading. Money is a medium of exchange and not a commodity Partners, investor and traders, buyer or seller relationship Creditor-Debtor relationship Aim at maximising profit but subject to Sharia'h restrictions Aim at maximising profit without any restrictions Promote risk-sharing between provider of capital (investor) and user of funds (entrepreneurs) assured of pre-determined rate of interest Functions and operations are based on Sharia’h principles Functions and operations are based on fully man made principles Islamic Micro Finance Conventional Micro Finance
Deal in Zakat ( Non Muslim Countries ) Do Deal in Zakat It gives due importance to the public interest, its ultimate aim is to ensure growth with equity Very often it results in the banks own interest becoming prominent. it makes no effort to ensure growth with equity Islamic banks have no provision to charge any extra money from the defaulters  It can charge additional money in case of defaulters  No right of profit if there is no risk involved. The profit and loss sharing depositor may lose money in case of loss. It is almost risk free banking and depositor has no risk of losing its money because interest is guaranteed. Islamic Micro Finance  Conventional Micro Finance
ONUS SHIFTS!! ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Industry Progress in Pakistan ,[object Object],[object Object],Year  2001 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2002 2003 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2 10 2008 - 09 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2004 - 05 18 4 3
Islamic products and services offered by  Financial Institutions around the world ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
International Overview  ,[object Object],[object Object],[object Object],[object Object]
International Overview ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
International Overview ,[object Object],[object Object]
International Overview ,[object Object],[object Object]
International Overview ,[object Object],[object Object],[object Object]
Thank You.

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Islamic micro financel for NRDP

  • 2.
  • 3.
  • 4. Islam and Shariah Islam Aqidah (Faith & Belief) Shariah (Practices & Activities) Akhlaq (Morality & Ethics) IBADAT (Man to God Worship) Muamalat (Man to Man Activities) Political Activities Economic Activities Social Activities Banking & Financial Activities
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 11. Encourage asset-based financing and based on commodity trading & Services Based on money trading. Money is a medium of exchange and not a commodity Partners, investor and traders, buyer or seller relationship Creditor-Debtor relationship Aim at maximising profit but subject to Sharia'h restrictions Aim at maximising profit without any restrictions Promote risk-sharing between provider of capital (investor) and user of funds (entrepreneurs) assured of pre-determined rate of interest Functions and operations are based on Sharia’h principles Functions and operations are based on fully man made principles Islamic Micro Finance Conventional Micro Finance
  • 12. Deal in Zakat ( Non Muslim Countries ) Do Deal in Zakat It gives due importance to the public interest, its ultimate aim is to ensure growth with equity Very often it results in the banks own interest becoming prominent. it makes no effort to ensure growth with equity Islamic banks have no provision to charge any extra money from the defaulters It can charge additional money in case of defaulters No right of profit if there is no risk involved. The profit and loss sharing depositor may lose money in case of loss. It is almost risk free banking and depositor has no risk of losing its money because interest is guaranteed. Islamic Micro Finance Conventional Micro Finance
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.

Editor's Notes

  1. Source: Institute of Policy Studies
  2. Collective Ijtamaee Ijtehad at 4.5