456 replies to this topic

[fasee]

thanks bro....now i checked..yes working for me there

[fasee]

well i must admit, its such high percentage of nearly 90 % of portfolio surprsied me.( one reason can be that i agressively offloaded all satta items in recent few sessions, like FCCL, JSCL etc )

but as i said earlier , the procedures "labelled" as shariyah comliance procedures, in its present form, still requires alot of hard work before they can truly call themselves one

ALLAH hum sab ko apni zindagi islam ke batay asoolon ke mutabiq guzarnay mein madad de...ameen

Amin Khan, on 21 February 2012 - 02:25 PM, said:

Welcome MasshAllah Good InsshAllah 100% bhi ho jay gi ... good luck ...

Edited by fasee, 21 February 2012 - 07:42 PM.

[Amin Khan]

fasee, on 21 February 2012 - 07:08 PM, said:

well i must admit, its such high percentage of nearly 90 % of portfolio surprsied me.( one reason can be that i agressively offloaded all satta items in recent few sessions, like FCCL, JSCL etc )

but as i said earlier , the procedures "labelled" as shariyah comliance procedures, in its present form, still requires alot of hard work before they can truly call themselves one

ALLAH hum sab ko apni zindagi islam ke batay asoolon ke mutabiq guzarnay mein madad de...ameen

Ameen ...

[Amin Khan]

Shariah compliance and public sector borrowing

As the debate on public sector borrowing intensified in the wake of the recent US debt crisis, and before that the adverse budgetary situations in a number of European countries, including but not limited to Greece and Ireland, led to political debate on the issue, it would be instructive to look into Shariah guidelines for public debt.

The issue is also relevant to a number of Muslim countries, including Pakistan, where Shahid Kardar, the former governor of the State Bank of Pakistan, resigned perhaps because of disagreement over the government’s stance over public debt.

Public sector borrowing has direct implications for inflation and for private capital accumulation (if the government borrows either from the private sector or its central bank).
One of the greatest Islamic economists of the present times, Dr Umer Chapra, lists four reasons for excessive borrowing by the Muslim states of the past and present: corruption and wasteful spending, price subsidies, large and inefficient public sector, and defence expenditure. It appears as if all these factors exist in today’s Pakistani economy, contributing to excessive public sector borrowing. It would help to see what a country like Pakistan should do to reduce its public sector borrowing requirement.
Monzer Kahf, another leading contemporary Islamic economist, lists three basic functions that the early Islamic governments performed: defence, judiciary and what was known as society’s management (internal social/tribal affairs and foreign relations). Social goods (health, education, drinking water etc) were provided through philanthropic actions and Auqaf. Therefore, the first and foremost action that Pakistan should undertake is to reduce public sector output. If the state limits itself to the provision of defence and internal security, judicial sustenance, and the running of national politics and international relations, a lot of expenditure that the government now incurs could either be shifted to the private sector or not-for-profit sector, also known in Islamic economics as the third sector.

The government must stop subsidising certain goods and services. The experience of the recent past of subsidising petroleum products has resulted in the on-going energy crisis in the country in addition to worsening the budget deficit and increasing the public sector borrowing requirement. The government must also not pay cash to support lower-income families and business units. This does not result in any increase in the productive capacity in the economy.

Shariah guidelines with regards to public sector borrowing are simple. These guidelines clearly state that the government must not borrow in order to provide goods and services that the private sector or the third sector has otherwise ability to produce and supply. Therefore, there is no point of keeping on borrowing to run such corporations like Pakistan Railway, Pakistan International Airlines, and similar corporations.

These guidelines also state that borrowing for meeting the non-developmental expenses of the government cannot be justified. If a government fails to collect enough taxes to meet its current expenses, it is certainly an incompetent authority that must not be allowed to borrow.

Under Shariah guidelines borrowing from the central bank for meeting current expenses should not be allowed. It is an act of injustice on the present and future generations who must pay the price of subsequent increase in inflation.

The writer is an economist and PhD from Cambridge University
(Tribune)

[Amin Khan]

Islamic banking industry may double market share
KARACHI: State Bank of Pakistan (SBP) Governor Yaseen Anwar has expressed hope that the country’s Islamic banking industry will double its market share in the next five years.

Inaugurating the second two-day International Conference on Islamic Business (ICIB) on ‘Managing Shariah Conforming Businesses: Prospects, Practices and Personnel’ organised by Riphah International University at the National Institute of Banking and Finance (NIBAF) in Islamabad on Tuesday, he said the Islamic banking industry was growing at a fast pace and maintaining an average growth of 30 per cent over the past six years.

He said the Islamic banking industry’s asset base reached Rs641 billion, which constituted almost 8% of the overall banking industry.
The Islamic banking network was also spreading at a significant pace with the total number of branches reaching 886, he said, adding the industry was still facing challenges and constraints that needed to be addressed to sustain the growth momentum.

According to Anwar, agriculture and SME are sectors of paramount importance, employment generation and overall development of the country. However, these remain largely ignored despite their huge potential and financing appetite.

“This represents huge Shariah-compliant opportunities for Islamic banks,” he said and added reaching out to such sectors would not only be beneficial for the Islamic financial industry but would also guarantee economic welfare of the society.

[Ayub]

It shall be more realistic for Shariah Compliant long term risk averse investors to keep KMI30 as bench mark (price, volume & value) for reading market sentiments & making decisions regarding gaining/reducing exposure in any share till 01 Apr 2012.

(Core Shariah Compliant Shares : POL FFC OGDC PSO PPL ATRL LUCK HUBC NML FFBL DGKC)

"Although inertial momentum could see the index rising further, it would be prudent to
sell on strength as the index is extremely overbought and hence prone to correction". KASB