Guidelines for Islamic Modes of Finance  

April 15, 2005 

 

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

  
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

The Shariah Board of the State Bank of Pakistan has approved and incorporated some of the suggestions given by different stakeholders in the Essentials of Islamic Modes of Financing to ensure compliance with minimum Shariah standards by banks conducting Islamic banking in Pakistan. These essentials have been placed on SBP website (http://www.sbp.org.pk/) as General Guidelines to be followed by banking institutions conducting Islamic banking in the country.

Essentials of Islamic Modes of Financing
These Essentials are proposed to be enforced as Prudential Regulations for Islamic banks in due course.

Similarly, in order to facilitate the existing Islamic banks and the potential market players to develop Islamic banking products in particular and to create awareness about Islamic banking products in general, Model Agreements for the following modes have also been updated in the light of stakeholder’s comments by the SBP Shariah Board. The following links may be clicked to access the same from our website (http://www.sbp.org.pk/)

1. Murabaha Facility Agreement
2. Musawamah Facility Agreement
3. Lease Agreement
4. Salam Agreement
5. Musharaka Investment Agreement
6. Istisna Agreement
7. Agreement for Interest free Loan
8. Mudaraba Financing Agreement
9. Syndication Mudaraba Agreement

It may be pointed out that these are model agreements, which can be modified, according to the products designed by the banks conducting Islamic banking business, with the approval of banks Shariah Adviser to ensure that such changes are consistent with the principles of Shariah.

Any queries with respect to the Essentials or Model Agreements may please be sent to Mr. Pervez Said, Director, Islamic Banking Department / Adviser to the Governor on Islamic Banking, State Bank of Pakistan, Karachi through mail / fax (021-9212472) or e-mail ([email protected]).

Essentials of Islamic Modes of Financing



 
 

 

       
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