Institute of Islamic Banking

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Browsing Institute of Islamic Banking by Author "Atiq Ul Haq"

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    Issues of Bai Tawarruq in Islamic Banks of Pakistan
    (University of Management and Technology, 2016) Atiq Ul Haq
    The evolution of Islamic banking and finance has tremendously influenced the economy world-wide, especially in Islamic countries. In recent decades, Islamic banking has become a major competitor of conventional banking system. Conventional banking users are increasing day by day due to its Sharia compliant principles and Islamic banking diversified range of products. Tawarruq is one of the Islamic banking products which is commonly used in Islamic banks. This research has focused on the fiqh perspectives of Tawarruq and its implementation issues in Islamic banking system.In this research, initially we have done the empirical study consideringsecondary data as qualitative methods. In the result, we analyzed that the research is based on different views of the followers and challengerstowards the legality of Tawarruq in Islamic fiqh. The basic condition of valid sale is considered better than that the other aspects,and it has beenreviewed by scholars of the field for valid sale according to sharia compliant. Due to that the legality of Tawarruq, it has been discussed by sharia scholars. There are some rules and resolutions in Islamic countries forthe legality of Tawarruq. In actual practice, Tawarruq is used as a commodity Tawarruq in Malaysia andin Middle East countries, it deals with commodity transaction through Tawarruq principle. Based on the comparative study and literature results, we explored that Tawarruq is permissible with certain conditionif it is strictly followed according to Sharia compliant, otherwise Tawarruq is not allowed.