Press Release

April 15, 2005 

 

State Bank’s Shariah Board Approves
Essentials and Model Agreements for
Islamic Modes of Financing

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Essentials of Islamic Modes of Financing
Murabaha Facility Agreement
Musawamah Facility Agreement
Lease Agreement
Salam Agreement
Musharaka Investment Agreement
Istisna Agreement
Agreement for Interest free Loan
Mudaraba Financing Agreement
Syndication Mudaraba Agreement
In the Name of Allah, the Merciful, the Compassionate
MUSHARAKA INVESTMENT AGREEMENT
(For Incorporated Companies)
Annexure-I


BASIS OF PROVISIONAL PAYMENT TO THE INSTITUTION<>
(All Figures are Illustrative)


    Agreed Ratio
For Profit
Sharing
Rupees
A)
Client’s investment 70% Rs. 100
B)
Institution’s investment 30% Rs. 100
C)
Total Investment (A+B)   Rs. 200
D)
Agreed Projected Rate of Return on Total Investment 60%  
E)
Projected amount of Profit on total investment   Rs. 120
F)
Allocation of Projected Profit in mutually agreed profit sharing
   
     
Ratio of:    
Client 70% Rs.   84
Institution 30% Rs.   36
    Rs. 120
G)
Quarterly provisional payment of projected Profit 36/4 = Rs. 9 per quarter    
H)
Allocation of actual net profit of Rs. 160 on year end:    
Client   Rs. 112
Institution   Rs.   48
      Rs. 160
I)
Therefore, final net payment to the Institution will be Rs. 12 (Rs. 48 - Rs. 36)    

 

<> Based on the projected rate of Return stipulated in Clause 4(vi)
 
 


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