08-27-2007, 07:23 AM
Dear,
Plz note one thing, whereever only profit is ensured against a finance, it can never be islamic. You can see the cases, where entities wud be earning loss but paying mark-up (profit) to lenders (even under islamic financing) thus thereby increasing their loss on the cost of profit earned by the lender.
You can see the accounts Profit and Los Sharing (PLS) account. Had ever any bank transferred its loss to any of such account maintained by you in any bank. It's ridiculous. It's not islamic. It was Islamic by the conceptual framework of Zia-ul-Haq who also passed Modarba Comapnies (Floatation and control) Ordinance 1980, made its rules and established so-caled religious board to approve such modarbas to be as per Islam Naoozbillah. Have you ever observed methdologies of earning profit (interest) by such non-trading modarbas? They never embed the option of loss in any of the finance provided by them. Similarly, in Zia-ul-Haq regime so many changes were brought up to banking sector giving it a makeover of Islamic framework. This way Islamic banking cannot be implemented.
My these words are not purposed to conclude that in Islamic mode of financing, finance cannot be given. There could be so many possibilities. One of my friends in some Joint Venture investment company discussed with me some new product of pure islamic financing and I really appreciate his research and struggle. He said they will send it ICAP and SECP for approval and implementation.
I cannot discuss that methodology at the moment since it is their business secret undisclosed at the moment. However, banking or lending is posible in Islam with a concept of sharing profit as well as loss (and not only profit). We only have to change our minds and stand against RIBA enforcing agencies.
Best regards,
Kamran.
Plz note one thing, whereever only profit is ensured against a finance, it can never be islamic. You can see the cases, where entities wud be earning loss but paying mark-up (profit) to lenders (even under islamic financing) thus thereby increasing their loss on the cost of profit earned by the lender.
You can see the accounts Profit and Los Sharing (PLS) account. Had ever any bank transferred its loss to any of such account maintained by you in any bank. It's ridiculous. It's not islamic. It was Islamic by the conceptual framework of Zia-ul-Haq who also passed Modarba Comapnies (Floatation and control) Ordinance 1980, made its rules and established so-caled religious board to approve such modarbas to be as per Islam Naoozbillah. Have you ever observed methdologies of earning profit (interest) by such non-trading modarbas? They never embed the option of loss in any of the finance provided by them. Similarly, in Zia-ul-Haq regime so many changes were brought up to banking sector giving it a makeover of Islamic framework. This way Islamic banking cannot be implemented.
My these words are not purposed to conclude that in Islamic mode of financing, finance cannot be given. There could be so many possibilities. One of my friends in some Joint Venture investment company discussed with me some new product of pure islamic financing and I really appreciate his research and struggle. He said they will send it ICAP and SECP for approval and implementation.
I cannot discuss that methodology at the moment since it is their business secret undisclosed at the moment. However, banking or lending is posible in Islam with a concept of sharing profit as well as loss (and not only profit). We only have to change our minds and stand against RIBA enforcing agencies.
Best regards,
Kamran.
