Institute of Islamic Banking

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Browsing Institute of Islamic Banking by Author "Asim Shahzad"

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    Market potential of Islamic banks in agriculture business
    (University of Management and Technology, 2015) Asim Shahzad
    Agriculture is an important sector of any economy; country like Pakistanagriculture sector has leading position in the growth of economy. Agricultural mechanism boosts up the GDP growth rate and revolutionizes the frame of Pakistaneconomy. This revolutionary epoch make role of financial sector most crucial to meet the need of the day. Pakistani agriculturists are much bounded to the religious traits than the industrial populace, and reluctant to utilize the financial facilities provided by the conventional banking. Islamic banking system in Pakistanhas least contribution in the development of argi-business development. There is a need of short term loan financing to match the day to day or weekly expenses, purchase of raw material, medication arrangement and salaries of the staff members, as the agri business is mostly seasonal and thus it is quite difficult for the small farmers to manage their cash flows. On the other hand they are also in the need of long term financing to support their fixed assets vital for existence of the business The study found that majority of the farmers and farm managers are not aware about the short term and long term financing by the Islamic banks. They are also of the opinion that not any Islamic bank is providing short term loan facility for the availability of loan for day to day working capital requirements and for medication purposes, which indicates the low awareness level among the people regarding the Islamic banking products in this sector, known as the back bone of the economy.