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Item Challenges in Adoption of Salam Financing for Agriculture Sector Development in Pakistan(UMT, Lahore, 2024) Tahir MehmoodBackground: The agriculture sector provides food and labour employment facilities in every country. In developing countries, though most of the population is involved in agriculture, they are stuck in traditional farming methods with little or no equity capital. The agriculture sector depends on the credit supply function. There are three major players. First government-owned institution, then the usurious banking system, and lastly the Middleman (Arthi) who provides informal loans. These economic agents did not give the Shari’ah based agri-financing facilities and are charging interest (usury) for providing credit facilities to the farmer without risk participation. Islamic banking was new in Pakistan, and did not involve the agriculture sector much. The Islamic mode of finance Salam is the best substitute of conventional financing, which helps to boost productivity, eliminate the riba factor, and provide easy financing to the agriculture sector. Many studies have discussed the financial problems of the farmers and the agriculture sector, but it was lacking in discussing the issues related to the Salam product developers.Item Augmenting disaggregated output growth through Islamic bank financing optimization(UMT, Lahore, 2024) Sadia YasminFinance is widely regarded as vital to the functioning and vitality of an economy, playing a crucial role in driving a nation's progress and maintaining its stability. However, this perception has been called into two propositions, (1) ‘More finance more growth’ formed U-shaped profile and (2) ‘too much finance harm economic growth’ formed inverted U-shaped profile. Available literature has presented inconsistent results by solely considering a single indicator of total Islamic financing either on heterogenous or homogenous group of countries. Since the setoral composition of every country is different, therefore financing can impact differently. To fill the gap, this study has been conducted on a developed islamic banking market of Malayisa and a developing market of Pakistan by decomposing Islamic bank financing into two distinct components: Islamic producer financing and Islamic consumer financing. By using quarterly data from 2010:Q1 to 2020:Q4, this study places special emphasis on examining the nonlinear impacts of financing on disaggregated output growth. Based upon quantitative time series analysis, this study has employed autoregressive distributive lag (ARDL) with nonlinear specifications. The estimated coefficients further plotted to visualize the relationship moderation between financing and growth in the economy by using Dawson (2014) approach. Empirical estimations provided different outcomes of relationship moderation based upon each model of the study and further proposes the notion of ‘more optimized finance, more growth’.Item IMPACT OF EMPLOYABILITY SKILLS ON THE PERFORMANCE OF ISLAMIC BANKS MEDIATING ROLE OF SHARIA'H(UMT, Lahore, 2024) Afia MushtaqBackground of the Study: The economic value of an organisation can be enhanced through its human resources who possess the requisite skills, knowledge and expertise. Human resources employed by organisations are considered the fundamental organisational asset required to facilitate achieving business goals. The Islamic banking and finance industry has a complex operating environment may create HR challenges in having the right people in the right job. Purpose: The current study examines the impact of the employability skills of Islamic finance graduates on Islamic bank performance. The study also investigates how Islamic finance graduates Sharia'h exposure mediates the relationship between the employability skills of Islamic bank graduates and the Islamic bank performance in Pakistan. Methods: An empirical primary data-based study is conducted through a survey-based questionnaire to collect data from 394 Islamic bankers from five full-fledged Islamic banks and six conventional banks with more than 100 Islamic branches in Pakistan. Findings/Outcomes: The empirical findings show that employability skills significantly impact the performance of Islamic banks in Pakistan. The study further contributed that Islamic finance graduates' Shariah exposure is a significant factor in enhancing the performance of the Islamic banking sector of Pakistan besides employability skills and subject knowledge. Conclusion: Skilled HR availability is the need of a significantly growing IBF industry. The changing business environment emphasises education, developing employability skills and acquiring subject-specific knowledge and Sharia'h exposure. Research Implications: The bank's management, academicians, decision-makers, and policymakers try to optimise the graduate skills through educational programs and by providing employability skills to increase the performance of the Islamic banking stream so that true talent comes into the Islamic banking and finance industry from the academia to cope the challenges that this industry in Pakistan and across the globe is currently facingItem Augmenting disaggregated output growth through Islamic bank financing optimization(UMT, Lahore, 2024) Sadia YasminFinance is widely regarded as vital to the functioning and vitality of an economy, playing a crucial role in driving a nation's progress and maintaining its stability. However, this perception has been called into two propositions, (1) ‘More finance more growth’ formed U-shaped profile and (2) ‘too much finance harm economic growth’ formed inverted U-shaped profile. Available literature has presented inconsistent results by solely considering a single indicator of total Islamic financing either on heterogenous or homogenous group of countries. Since the setoral composition of every country is different, therefore financing can impact differently. To fill the gap, this study has been conducted on a developed islamic banking market of Malayisa and a developing market of Pakistan by decomposing Islamic bank financing into two distinct components: Islamic producer financing and Islamic consumer financing. By using quarterly data from 2010:Q1 to 2020:Q4, this study places special emphasis on examining the nonlinear impacts of financing on disaggregated output growth. Based upon quantitative time series analysis, this study has employed autoregressive distributive lag (ARDL) with nonlinear specifications. The estimated coefficients further plotted to visualize the relationship moderation between financing and growth in the economy by using Dawson (2014) approach. Empirical estimations provided different outcomes of relationship moderation based upon each model of the study and further proposes the notion of ‘more optimized finance, more growth’. This study emphasized the significance of striking a balance and optimizing the level of finance to achieve maximum economic growth. Its primary objective is to ascertain the appropriate financial ceiling that effectively regulates financial activities, while also recognizing the criticality of threshold points for regulatory authorities. In both Pakistan and Malaysia, policymakers ought to reconsider the Islamic financial development policies to fully leverage the significant potential of the Islamic finance sector for economic growth. It is imperative to take further steps to liberalizing the Islamic financial system, thereby eliminating financial constraints, espacialy considering its connection to KIBOR in pakistan. The diminishing effect observed near the financing threshold underscores the need for meticulous attention and effective measures to be taken.Item Islamic Banking Model in the Light of Maqasid al Shariah: A Way Forward(UMT, Lahore, 2024) Muhammad Nadeem KhalilIslamic banking has made tremendous growth over the last twenty years all over the world including Pakistan. However various studies conducted by well-renowned researchers indicate Islamic banks have failed to achieve Maqasid al Shariah. Socioeconomic indicators in Pakistan also support the results of these research studies with increasing poverty, unemployment, and unequal distribution of wealth in Pakistan which indicates Islamic banks are not contributing effectively towards the socio-economic well-being of the people and achieving Maqasid al Shariah. The objective of conducting this study is to evaluate the current practices of Islamic banks in the light of Maqasid al Shariah, analyze why Islamic banks have failed in achieving Maqsid al-Shariah, and then develop an Islamic banking model in the light of Maqasid al Shariah to achieve Maqsid al-Shariah. To achieve this objective, this study employs a qualitative, exploratory research methodology in which face-to-face semi structured interviews with Shariah Supervisory Board (SBB) members of Islamic banks, Shariah scholars, academicians, and policymakers are conducted by using a non-probability purposive sampling technique. A total of 46 participants for this study is contacted out of which 20 participants are interviewed keeping in view the purpose and nature of the study. The grounded theory approach is used in this research and data is analyzed by using NVIVO software. The results of this study show that current practices of Islamic banks are not achieving Maqasid al Shariah and there is a dire need of developing and new model of Islamic banking to achieve Maqasid al Shariah. In addition, factors due to which Islamic banks have failed to achieve Maqasid al Shariah are also identified. The role of various stakeholders such as the government, regulator of Islamic banks (State Bank of Pakistan), Islamic banks, and the general public has been identified for the development of the Islamic banking model in the light of Maqasid al Shariah. Fruitful recommendations regarding the opening of current accounts, Mudaraba accounts, subsidiary Mudaraba companies accounts, restricted accounts, Wakala accounts, Waqf accounts, charity accounts, Zakat accounts, and practical procedure of Musharakah and Mudarabah financing, etc. are made for structuring the asset and liability side of Islamic banks for the development of the Islamic banking model in the light of Maqasid al Shariah.