Islamic Leasing system

[Sarfaraz]

AOA
Can any body tell me about islamin leasing system by meezan bank which is called Ijara


There is a will there is a way.

[smraza]

Hi Sarfraz,
I dont know about the lease offered by Meezan bank, but if u want to know about Ijarah, following is the link to Molana Taqi Usmani's lecture on Ijarah,
it is PDF file
http://http//www.accountancy.com.pk/refe...unting.asp
you know what? ICAP has already issued a Islamic Accounting Standard on Ijara,
for this ICAP did a great job, It replaced the word Lease or Leases with Ijarah in IAS 17.
great job, well done ICAP <img src=icon_smile_big.gif border=0 align=middle>

S M R

[Sarfaraz]

thnks SMRAZA waise mujhe jab bhi jawab mila hai aap se hi mila hai thanks for this.
And haapy Ramadan to you

There is a will there is a way.

[CBPian]

i wud just addd that ijarah is not a preferred method of islamic financing... and it is like something which is allowed as a necessity...until musharaka and other preferred methods take roots.
... i cant help congratulate icap on the standard...<img src=icon_smile_big.gif border=0 align=middle><img src=icon_smile_big.gif border=0 align=middle>
.. if technical committees cant do more than find/replace then it wont make much difference if this job is outsourced<img src=icon_smile_big.gif border=0 align=middle>

[smraza]

Agreed CBPian <img src=icon_smile_big.gif border=0 align=middle><img src=icon_smile_big.gif border=0 align=middle><img src=icon_smile_big.gif border=0 align=middle><img src=icon_smile_big.gif border=0 align=middle><img src=icon_smile_big.gif border=0 align=middle>

S M R

[Paki]

Asalam o alaikum
CBPian it would be easier if you could unfold your grudge against ICAP somewhere else cause you could realy get a handful of readers there.
yar SARfaraz, agar smraza jawab deta bhee hay to kia faida, gol mol jawab hee deta hay (jk) keep up the good work , raza
I've come across some modarabas and also a friend was doing some research on ijara and consequently he studied meezan bank too (he shared some of his opinions with me too) but I dont remember the details of ijara and all, but I would say one thing and that is all this modaraba leasing and ijara is just another way of doing the same interest business (its just that we take a different route to the same objective)
Musharika, I think is much closer as far as the process is concerned but like others, the purpose is the same (provide a risk-less, fixed return except for a very minimum return for a certain , usually very tough, level of profitability and loss is minimised through the takaful reserve concept) so it all narrows down to doing the same thing as was done in an interest based economy and labeling it as Islamic by changing the processes.
Some experts even argue about that interest is not just on money, which is a monetary asset, it is also on other assets (like machinery) which are non monetary by charging over and above the regular price (which is what we do in lease)
and I feel skeptic about Moulana Taqi Usamani too. but later on that.

Me rulz

[CBPian]

r u a member of a technical committee mr paki
<img src=icon_smile_big.gif border=0 align=middle><img src=icon_smile_big.gif border=0 align=middle><img src=icon_smile_big.gif border=0 align=middle><img src=icon_smile_big.gif border=0 align=middle><img src=icon_smile_big.gif border=0 align=middle><img src=icon_smile_big.gif border=0 align=middle><img src=icon_smile_big.gif border=0 align=middle><img src=icon_smile_big.gif border=0 align=middle>
btw... i hold no grudge against icap or its committees as i am planning to get into the management <img src=icon_smile_wink.gif border=0 align=middle><img src=icon_smile_wink.gif border=0 align=middle><img src=icon_smile_wink.gif border=0 align=middle>