Institute of Islamic Banking (IIB)

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Browsing Institute of Islamic Banking (IIB) by Author "Mubeen Butt"

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    POTENTIAL OF LIVESTOCK TAKAFUL IN PAKISTAN: AN EMPIRICAL STUDY
    (UNIVERSITY OF MANAGEMENT AND TECHNOLOGY, 2015) Mubeen Butt
    Livestock Takaful has emerged as Shariah compliant alternate to conventional livestock insurance. The focus of the study is to access the demand for the livestock Takaful in Pakistan. Livestock sector is considered the backbone of the economy and contributing 11.8% of GDP. It is engaging significant portion of population of the country. Pakistanis fifth largest milk producing country. Livestock insurance confronts with different types of risks faced by the farmers like flood, heavy rainfall, earthquake and other natural disasters. Livestock insurance is used to mitigate risk. Livestock is yet prohibited by Shariah scholars to elements of Riba, Gambling, Gharar and Qimar. A sample survey of 250 dairy farmers was conducted between January to March 2015 in the three main Areas of Punjab which have abundant of livestock Lahore, Kasur and Raiwind i.e. is to assess, to what extent farmers are willing to livestock Takaful .Descriptive statistics and Binary logistic Regression is were used to assess the potential and demand for livestock Takaful The result of a Binary logistic model indicates that Gender, Farm income, Household income and No of animals have significant positive relation with demand for livestock Takaful. Result of this study determined most of the farmers are willing to purchase Islamic livestock Takaful for Cow share is 80(55.17). Policy implication, such as the need to establish a Shariah compliant product for livestock with using different awareness programs through different media sources.