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Item ALLEVIATION OF POVERTY FROM ISLAMIC PERSPECTIVE(UMT.Lahore, 2015-10)The research paper takes into account analysis of the causes of Poverty and the methods being used for its measurement. The main aim of the research is whether the poverty alleviation schemes being run are according to the Islamic Laws (Shariah) or not. In the first stage this research will cover detailed study and analysis of previous research work already carried out by the research scholars, for which a lot of information is available through various sources.Item APPLICATION OF BAI SALAM IN AGRICULTURE SECTOR OF PAKISTAN(UMT.Lahore, 2015-08) MIR SAJJAD RAFIQIslamic Banking is taking up its roots fast in the Muslim World including Pakistan mainly due to the Islamic Shariah prohibition of indulging in the practice of Interest (Riba) and hence to earn their livelihood in conformity with the Shariah framework. The seed of Islamic Banking was sowed in Pakistan in 1981 with the establishment of Federal Shariat Court. But with the start of Islamic Banking in Pakistan, criticism also followed on its working and interpretation of Shariah Principles. Majority of the Ulemas of different Schools of Thought in Pakistan did not approve of the prevalent Islamic Banking which has thrown a challenge to the Islamic Scholars to bring forth True Islamic Products on the Financing side and their mode of administration to conform to Shariah laws. On the liability side the Scholars are in conformity that it should be done on Modarababasis.Item موجده االسیم اکنیبری ںیم ریچیٹی ڈنف اک وصتر اکی تقیقح دنسپاہن زجتہ(UMT,Lahore, 2015) محمد انمعننItem ISSUES OF ISLAMIC LETTERS OF CREDIT IN TRADE FINANCE(UMT, Lahore, 2015-10-27) BASIM JAVAIDIslamic Banking happens to be one of the fastest growing sectors in the global Banking Industry. With the growth of the Islamic Banking and it‟s various departments, there has been a significant development in the Islamic Banking Trade Finance products. Letters of Credits have always played a very important role in the Trade Finance Departments. However, the structure of Letter of Credits in case of Islamic Banking is somewhat different than the convention letters of credit. An attention-grabbing research study in this context is to find out the issues that are faced during the progressive implementation of Islamic Letters of Credit. The main aim of the research study is to carry out a detailed investigation into implementation of Islamic letters of credit and find the issues during various phases of execution; furthermore the dependency of various factors effecting the application of Islamic Letters of credit was determined. The study was conducted using both qualitative and the quantitative data collection methods. The primary data collected was analysed to study the relationship amongst different variables of the study and dependency on one another. It was found that the Islamic Branding, Quality Services and the Shariah compliance all have positive relations and dependency on one another. From the results of the study it was concluded that along with the personal interest of Islamic Mind set people; the understanding and knowhow of the Islamic Banking is necessary for the Islamic Banking and Trade Practitioners so that they may educate their customers and overcome the issues that arise during the implementation of Islamic Letters of Credits.Item مروجہ اسلامی بینکاری میں وکالت کا استعمال ایک تجزياتى مطا لعہ(UMT,Lahore, 2015) محمد عرفاناس مقالہ میں وکالت کے متعلق تفصیلی بحث کی گئی ہےاس کا خلاصہ یہ ہے کہ قرآن و حدیث کی روشنی میں وکالت جائزہے،اور بنیادی طور پر یہ ایک عقدِ احسان ہے، تاہم اگر اس میں متعین اجرت لی جائے، تو ایسی صورت میں وکیل کے لئے عقد وکا لت میں اس چیز کی خریدو فروخت میں خریدے گئے مال پر قبضہ کرنا اور فروخت کئے گئے مال کے ثمن پر قبضہ کر کے عقد وکالت کو مکمل کرنا واجب ہو گا ،اورمکمل کرنے کے بعد ہی اس پر اجرت لینا جائز ہوگا۔ مذکورہ مقالہ میں ائمہ کےفقہی مذاہب کی روشنی میں وکالت کی متّفقّہ تعریف یہ بنتی ہے کہ ''ایک شخص کا دوسرے شخص کو جائز کاموں کے لئے اپنا قائم مقام بنانا ''Item SPEED CONTROL OF DC MOTOR BY SWITCH MODE POWER SUPPLY (SMPS)(UMT, Lahore, 2015-06) Muhammad Naeem; Aamar SharifThis thesis gives the whole idea and theme of the “Speed Control of DC Motor by SMPS” to the reader. An efficient and commonly use power converter nowadays is 10 Switch Mode Power Converter (SMPS), Switch Mode Supply (SMPS) and liner power supply are two types of DC power supply available in market. Due to the same power rating, customer prefers SMPS than linear power supply. SMPS is smaller, cheaper and lighter than linear power supply. SMPS also have better efficiency than linear power supply. In this thesis an AC to DC converter SMPS circuit, having a BJT’s for switching operation and a PWM based feedback circuit for driving the switching of the BJT’s. The ideal switch is when all power is absorbed by the load and there is hundred percent energy efficiency, there is no current when the switch is open and there is no voltage when the switch is closed. For this project, PWM (Pulse Width Modulation) is being used to drive the switches. This project is focusing on developing SMPS using fly-back converter topology. In this design the line voltage at 220V/50Hz is taken as input. An Isolation Transformer is used to isolate the DC output from input supply. The transformer output is rectified by the high frequency Diode bridge rectifier and is filtered using a capacitor to give the regulated DC output. A Voltage regulator is connected to give the precise voltage output. This regulated voltage is driven by PWM feedback signal, to control the output voltage level. The dc voltage at the output depends on the width of the switching pulse. The on and off of the switch is important because the duty cycles of the PWM is used to regulate the DC output voltage. So the desire output voltage can be produced by generate various duty cycle.Item AXIOMS OF FINANCIAL MARKET IN ISLAM PAST-PRESENT-FUTURE(UMT, Lahore, 2015-08-31) FAHAD AHMED QURESHIShariah law states that the responsibility of a man is to structure this world without annihilation force, in the interim or after the building. If acerbic tree to make caricature expedite to the terra firma deterioration then that acerbic tree categorized as annihilation to the terra firma and intrinsically become prohibited. Islam is a schema for entire universe and is extravagant bounteous than Halal and Haram. In the macrocosm corporate atmosphere, Islamic perspective of Financial Markets is an emerging practical field of study with a few material available in published form discussing authentic insight and practical perspective to the Islamic outlook on axioms and principles related to its operational, managerial and ethical issues. Axioms of Financial Market in Islam address a sole feature of Islamic financial market that has been consequently slighted. It aims to support the theoretical framework for understanding the IFM, as well as, code of conduct and code of ethics and demonstrate practical perspective for contemporary financial market i.e. leaders, participants and corporates.Item RISKS IN SALAM IN ISLAMIC BANKING(UMT.Lahore, 2015-08) HAMMAD FAZALPurpose: The purpose of this study is to describe the risks present in different stages of Salam when it was used as mode of finance in Islamic banking. Also, to discuss the mitigation tools to avoid those risks, highlighting the boundaries and limits for risk management mentioned by Shariah. Research Methodology: The research methodology used in this research is descriptive in nature. The study is theoretical research based. The topic that was selected is based on studying field of Islamic banking and finance and Islamic jurisprudence. Findings: Salam transaction is allowed in Sharia, under strict conditions. These conditions had made Salam, too risky, as compared to other Islamic modes of finance. Moreover, Salam contracts consist on different steps and phases. Number of risks is associated with each stage. All such risks were mentioned in the findings. Therefore, also some risks which was associated with gharar. Presence of such risks makes Salam transactions unlawful. Research Limitation: This research is limited to Islamic banks in Pakistan, focusing on Salam as mode of finance. In this study, Salam was discussed mainly as per Hanafi school of thought but other school of thoughts was also mentioned in a general way. Practical Implication: This research study will be helpful for risk analyst, so that he can recognize those risks which he can face in different stages and phases of Salam transaction. Also it will be helpful for Sharia Auditors of Islamic banks and other Islamic financial institutes, so that they manage and mitigate Sharia noncompliance risks in a better way. This study is also useful for finance manager of Islamic banks so that he can mitigate and manage those risks. Originality: Salam transaction is very useful modes of finance for Islamic financial institutes. No research work has been done on identification and management of risks involved in different stages of Salam. So writing of research paper that focuses on risk identification in different phases of Salam, their management and mitigation, was really needed.Item PREVENTING THE NEXT FINANCIAL CRISIS(UMT, Lahore, 2015-08-24) MUHAMMAD IMRAN EJAZThe Capitalist system has undergone numerous crises in its history and they seem to come one after the other. The Financial Crisis of 2007-2008 shook the whole foundations of the International Financial architecture and raised further questions as to what was inherently wrong with the system. Eyes turned towards the principles of Islamic Finance to see if here lay the answer to the problems facing the financial system in place in the world. This study has aimed to answer the question as to whether Islamic Finance principles offer a solution to preventing Financial Crises. Initially an analysis of the Conventional (International) and Islamic Monetary systems has been made in this study. This study has then gone on to analyze three crises ; Black Wednesday 1992-the currency crisis that shook Britain ; East Asian Currency Crisis and the Financial Crisis of 2007-2008.The mechanisms and the causative factors of these crises have been studied and isolated. These causative factors have then been studied under the light of Islamic Finance principles. In order to arrive at answers the methodology employed has been analysis of existing literature and use has been made of podcasts of leading financial experts. Access to experts who are at the same time well versed in knowledge of the workings of the International Monetary System and Islamic Finance is very difficult and limited. The study is unique in studying the Black Wednesday Currency Crisis in the light of principles of Islamic Finance. The researcher has not come across any previous study carrying out the above mentioned task. This study is also distinguished, from any previous work, in analyzing these three crises from the perspective of Islamic Finance as the contents of one thesis. The study has shown that the underlying causative factors of the three crises are in violation of the principles of Islamic Finance. The main causative factor behind the Currency Crises is shown to be the ability to carry out a Speculative attack which is possible due to the facility of short sales. The study shows that short sales are contrary to the teachings of Islamic Finance. Likewise the role of speculation in the 2007-2008 crisis is also highlighted along with the other causative factors. The study concludes that if the causative factors isolated in the three crises, which are in violation of the rules of Islamic Jurisprudence and still persist in the system, are removed from the International Financial Architecture then this system would be given great stability and the chances of a further crisis would significantly diminish.Item PROMOTION OF PAKISTAN HALAL INDUSTRY AS POTENTIAL HALAL FOOD HUB(UMT,Lahore, 2015) SYEDA HAMEEDA BATOOL GILLANIHalal in spite of religious issue is becoming a universal sign for quality assurance and standard of living. The world market for Halal goods and services is rising into influential energy in the pitch of world commerce and finance. Halal Products and Islamic Financial Services have market share of one trillion USD annually, and rapid growth is expected in forthcoming years. The aim of this study is to survey the potential and expectations of Pakistani halal food producers, financial management institutions, government logistics support, NGO‟s and Consultancy Services anticipate in Promoting Pakistan halal food industry as potential halal food hub. The survey of the study explored the halal food producers‟ awareness, perception and the strategies they adopted to uplift the halal industry of the Pakistan. Shariah compliance and standards also analyzed in the survey. The findings of the study suggest that Pakistan have abundant opportunities to unlock new business potentials by catering to the financial assistance, government support and NGOs amenities of the halal economy stakeholders. This study also explores upon the growth determinants and prospects of the Pakistan halal industry and the value propositions Islamic finance, government and NGOs offer to hold up businesses in the world halal industry. Halal practices are perceived as a sensitive issue among Pakistan halal food producers and operators. The study found that Pakistani food producers and distributers perceived that most of Muslim consumers prefer halal food items, a proper advertising and marketing strategy of Pakistan halal food could be a competitive advantage in this regard. Some policy actions are needed to be established as governance of halal is unsystematic in Pakistan. This study will be of great significance to the Marketers and food manufacturers in Pakistan. Pakistan halal marketers need to identify the position of Pakistan in the mind of various consumers throughout the worldItem ISLAMIC LAW OF COLLATERAL (Reȟ ’n)(UMT.Lahore, 2015-10) AQEEL AKHTARIslamic law states that the responsibility of a man is to structure this world without eradication force, in the interim or after the building. If acerbic tree to make caricature expedite to the terra firma deterioration then that acerbic tree categorized as annihilation to the terra firma and intrinsically become prohibited. Islam is a schema for entire universe and is extravagant bounteous than Halal and Haram. In the macrocosm corporate atmosphere, Islamic law of collateral is an emerging practical field of study with a few material available in published form discussing authentic insight and practical perspective to the Islamic outlook on principles and guidelines related to its operational, managerial and ethical issues. Islamic Law of collateral address a sole feature of Islamic financial market that has been consequently slighted. It aims to support the Islamic framework for understanding the ijunctions of Reȟ ‟n demonstrate practical perspective for contemporary financial market i.e. banking Industry, corporate sector and Islamic Financial Markets.Item DETERMINANTS OF PROFITABILITY OF ISLAMIC BANKS; SOME EMPIRICAL EVIDENCE FROM PAKISTAN(UMT, Lahore, 2015) Muhammad Adeel KamranFinancial and banking sector is the backbone of the healthy economic growth and playing a vital role in deployment of country showing their valuable impact on capital and money markets. In Pakistan, banks have been facing major challenges in volatile socio-political circumstances and economic instability over the past few years. The key purpose of this study is to examine the determinants of profitability in Islamic banking sector of Pakistan over the period 2006-2014. This study identifies the significantly influenced determinants of profitability of five selected IBs of Pakistan. The financial ratios i.e. ROA and ROE are utilized as dependent variables whereas, five internal indicators [Bank Size, Shareholder's Equity Ratio, Assets Quality, Ratio of Non-Remunerative accounts to Remunerative accounts & Operating Efficiency] and one external indicator [Bank Rate of Return], are used as independent variables. The empirical results showed a strong evidence that all these variables have a strong significance level and influence over profitability of long established & well capitalized banks and also evidenced that impact of performance indicators on ROE & ROA during global financial crises was ignorable for Islamic banks in Pakistan rather few malfunctioning of scale of economies (Hasan & Diridi, 2010) and (Hassan, 2010). 1 The results also showed that the prominent assets management does not affect on increasing trend of profitability directly on banks' books but some patterns of effective management is required to augment the profits level.Item ISLAMIC BANKING AND ECONOMIC GROWTH(UMT,Lahore, 2015) AFIA MUSHTAQIslamic banking in Pakistan has gained recognition, in last ten to eleven years. There are many products which are different from conventional banking and the most significant element is zero interest. Currently, a large no of people have motivation towards Islamic banking compared to conventional banking especially in the view of growth in its assets,investment and deposit. The increasing number of Islamic banking institutes indicates an increasing trend of Islamic banking in Pakistan. People are trusting on this mode of banking due to which the number of Islamic banking institutes is increasing and different conventional banks are opening Islamic banking branches to cater the increasing demands of people of Pakistan. Extensive work has been done in evaluating the connection between the financial sector and development, however research work regarding the Islamic banking framework is still insufficient .The present study is unique as it investigates the short run and the long run relationship between Islamic financial investment, its diverse items and financial development, especially in Pakistan .For the analysis we have utilized the bound testing methodology of integration and error correction models (ECMs), developed within an autoregressive distributed lag (ARDL) structure by Pesaran and Shin (1995), Pesaranet al. (1996) and Narayan (2004). Using quarterly data for the period of 2006-2013 it is found that there is a supply side relation between economic growth and Islamic banking in Pakistan and Islamic banking industry exerts significant impact on economic growthItem POTENTIAL OF LIVESTOCK TAKAFUL IN PAKISTAN(UMT,Lahore, 2015) MUBBEN BUTTLivestock 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 Pa kistan. 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. Pakistan is 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 dis asters. 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 re sult 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 lives tock 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.Item KAFALAH BASED ISTISNA MODEL FOR REGISTERED SME(s) AS VENDOR FOR CORPORATE SEGMENT(UMT,Lahore, 2015) MUHAMMAD HASHAM HASSANThe study proposes product development under Shariah compliance economic model for Islamic banking sector by conducting the descriptive nature of studies of Istisna financing and Kafalah (supporting contract) base for promoting registered SMEs by Corporate segment‟s identification. This study is conducted mainly for identifying that under prevailing practice of Istisna financing product available with the Islamic banking sector; the borrower provides a “Corporate Guarantee” under an independent capacity to an Islamic bank for guaranteeing the credit reputation of the buyers and undertakes for settlement of bank‟s liability where the buyer fails to pay the sale price to the bank. Shariah has certain obstacles for Islamic banking for returns over investments. Investments are based on assets under various target market segmentation. Besides all the constructive role of SME sector towards employment creation and national growth of economy is notable. It is effective target market for bank‟s earnings, national growth, corporate entities recognition, enterprises development and so on. The research study attempted to introduce a model for indulging the ultimate buyer specified product with Istisna transaction after issuing a work order to registered outsourced vendors (manufacturers) and attach buyer with transaction by issuing a third party corporate guarantee in favor of Islamic Bank. On the other hand supplier i.e. borrower of bank has to issue a “Performance Guarantee” for ensuring the specification according to ordering details in presence of Shart-e-Jazai. An undertaking/ promise by the buyer would secure the transaction for proceeds as per terms and conditions prescribed in the order against supplies of specify items. Thereby effective utilization of available modes of financing would beneficial for SME (s) for availing financial arrangements from banking sector against confirmed cash flows. This research highlights financial resort based on Shariah recognized models Kafalah and Istisna for entertaining small enterprises to avail financial arrangements against specific in hand ordersItem RISK MANAGEMENT OF MURABAHA(UMT, Lahore, 2015-08-24) HAROON SIDDIQUEPurpose:The purpose of this research study is to understand and identify the risk involved in Murabaha while reviewing financing proposals, their execution and to propose relevant mitigating tools. Research Methodology / Approach:The research design is more of descriptive in nature. The selection of topic for research study is based on the researcher study in the field of Islamic finance. Further, the selection of topic is driven owing to personal interest in the topic.Item Customer Relationship Management & Customer Loyalty in Islamic Banking Pakistan(UMT,Lahore, 2015) ASLAM HAYAT MANZOORIslamic Finance has grown and is being considered as a better alternative for dealing with the structural weakness of conventional financial system that is responsible for repeated financial crises all over the world. Islamic banking has its distinguished strengths like participation in real economic activity and being inbuilt risk management mechanism, detailed investment disclosures and the highest standards of corporate governance. Islamic finance is increasingly winning the confidence of consumers across the globe. Shariah Based Compliance is a comparative edge for Islamic financial Institutions besides the basic customer demand of service quality. In present research, the role of Customer Relationship Management (model having focused on customer loyalty) has been used to analyze the perception of Islamic banking customers with special emphasis on the core competency of Shariah Compliance. A preliminary Questionnaire (adapted from SERVQUAL and CARTER Model) has been used to determine the factors which influence customer Satisfaction/ Loyalty. Data has been collected from 152 respondents using a convenience sampling technique. T-tests have been used to find the extent of relationship among different factors of CRM and ultimate objective of customer loyalty. The results depicts that there is a strong positive association among different components of customer loyalty and CRM. There are fewer studies that I could find in which focus has been made specifically to Shariah compliance aspect of Islamic banking. Islamic banking is getting the increased market share in terms of total assets, deposits, financing and investment, so this study is very important for getting new customers and retaining the existing relationships.Item THE IMPACT OF MACROECONOMIC VARIABLES ON FINANCING BY ISLAMIC BANKS IN PAKISTAN(UMT, Lahore, 2020-10-26) MUHAMMAD AMAN UL HAQThis study determines the financing by Islamic banks is facing the impact of factors like Interest rate, real effective exchange rate, whole sale price index, Production index, and stock exchange index. It also examines Islamic banks financing is a complementary/supportive to conventional banks or substitute of it.Item ISLAMIC VENTURE CAPITAL IN PAKISTAN(UMT,Lahore, 2015) ARFAN SHAHZAD, ACAOne very important type of medium to long term financing is Venture Capital Financing that primarily involves long term equity financing for setting up new and high growth business ventures. Given the ever increasing unemployment numbers, the need for encouragement of entrepreneurs having excellent business ideas and skills, and investment in new business ventures cannot be over emphasised for sustainable economic growth. While the traditional Venture Capital Finance practiced worldwide has inherent similarities to Islamic Finance principles which are sharing the risks and rewards of businesses rather than financing on fixed interest, it also has oppressive and un-Islamic capitalistic hostility in it. Islamic Banking is evolving at a fast pace and a hot topic in today’s financial industry. However, it is subject to the criticism that Islamic Financial Institutions do not have out of box products to offer their customers. It is perceived that Islamic Financial Institutions will not only eradicate Fixed Interest (Riba) rather invest on profit and loss sharing basis. To understand why this practice is adopted by Islamic Banks on limited scale, it is also very important to study the brief reasons or risks due to which Islamic Financial Intermediaries are reluctant in long term equity financing and therefore, assuming business risks of the ventures to which they provide finance. To enable investment in long term equity modes of Islamic finance (e.g. Islamic Venture Capital) there is a need to critically analyse the short and long term needs of Islamic Financial Intermediaries and its investors. Moreover, at the same to boost investment on the basis of P&L sharing there has to be strict rules ensuring transparency in the conduct of businesses which seek long term finance by practicing high level of integrity and following best operating practices and timely reporting. This research study discusses the above issues by examining the importance of venture capital financing, un-Islamic practices of prevalent conventional venture capital financing, augmenting that investment based on profit and loss is preferred Islamic equity mode of financing, capital structure, investment cycle and risks faced by Islamic Banks. To conduct this survey based research and to get results for different variables, a comprehensive questionnaire has been prepared and circulated to concerned circles to get feedback which duly supports the matters emphasised in this research work. This research emphasizes the immediate need of equity based Islamic finance for new business ventures and will lead to development and growth of Islamic venture capital funds or dedicated Islamic venture capital windows in all Islamic Banks.Item PEOPLE’S PERCEPTION AND ATTITUDE TOWARDS ISLAMIC BANKING IN PAKISTAN(UMT,Lahore, 2015) Muhammad ZamanThe purpose of this study is directed to gage the impression of general populace perception and attitude about Islamic Banking in Pakistan. The sample of the study scattered to customers of Islamic banking keeping accounts with the respective banks. The results revealed that the majority of the people don’t have adequate data of the thoughts of Islamic Banking. A rate of the individuals did not even understand that Riba is forbidden in Islam. Less care about the Islamic dealing with record thoughts can be the essential driver of negative wisdom among general populace. This study moreover revealed that various people trust that Islamic banks have not expected their fitting part in making the care and data about the thoughts and working of Islamic dealing with a record. The study may help the Islamic banks to re-examine their publicizing systems so that the negative impression of the general population may be changed to a positive one.