(UNIVERSITY OF MANAGEMENT AND TECHNOLOGY, 2015) Muhammad Sohail Bhatti
The banks use agency agreement for appointing customers as its agent to buy the goods required by him under murabaha facility, to sell the goods under salam and istisna facilities and in ijarah to acquire the machinery as per requirement. The agency agreement is not devoid of conflicts. Some of the Islamic banks do not pay agency fee to the customer and those that are in practice of paying the agency fee include it in the cost of the transaction. Many Islamic banks are in practice of charging charity from customers acting as their agents in case of not selling the inventory under salam & istisna facilities by the due date. Brokerage “Samsarah” can be considered as the solution to the above mentioned problems as it motivates the customer working as an agent of the bank to fetch highest price for the inventory in hand from the market.