Please
refer to Appendix A(1) of Annexure-1 of IBD Circular No.
2 of 2008 wherein Murabaha is an approved mode of finance
for Islamic Banking Institutions (IBIs).
2)
Unlike normal Murabaha transactions wherein IBIs purchase
the goods on cash and sell the same on credit, under credit
Murabaha transactions, the IBIs purchase as well as sell
the goods on credit as the suppliers allow credit for
a certain period on the sale of goods. While normal Murabaha
transactions are recorded and reported as per IFAS-1,
the practice of recording and reporting of credit Murabaha
transactions is not standardized across the industry.
Therefore, in order to bring standardization in recording
and reporting of credit Murabaha transactions, the following
instructions are being issued which are in line with the
spirit of IFAS-1:
i.
The cases wherein IBI purchases the goods on supplier’s
credit and sells the same on credit under Murabaha, the
transaction shall be booked as on-balance sheet item by
appropriately recording ‘Payable to supplier’
and ‘Receivable from customers against Murabaha’
for the said credit purchase and credit sale respectively.
ii.
The CRR/SLR and capital adequacy requirements on the said
liability and financing respectively shall be applicable
as per prevailing SBP instructions, issued from time to
time.
iii.
Profit on the said transaction will be recognized as per
the provisions of IFAS-1.
These
instructions are applicable with immediate effect.
Please
acknowledge receipt.