Analysis of the Adoption of Mudarabah and Musharakah in Pakistan
DOI:
https://doi.org/10.48112/tibss.v2i4.949Abstract
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Because of the Riba free and Profit Loss Sharing (PLS) features, the reputation of Islamic banks has highly impacted the banking sector. The banking has been popular in many Islamic nations such as UAE, Malaysia, Indonesia and Pakistan. Pakistan is being governed commercially by the conventional as well as Islamic banking system. These Islamic banks have been prone to vulnerability in their lack of ability to tackle loans-based interest and their tiny existence lacking expertise.’ The questions which arise are whether there are any tools which benefit the Islamic banking sector. Yes, there are many products which provide interest-free banking to the folk in general so that the real essence of the law is being followed. The research paper focuses on the issue of conversion of Mudarabah (semi-partnership) into Musharakah (partnership) and whether the Standardization benefits Islamic banking in Pakistan will be discussed in the chapter. The paper goes into detail regarding ‘the methods of preparing, adopting, and implementing as well as promulgation of laws in Pakistan in respect of these Standards.
Keywords:
Mudarabah, Musharakah, Profit and loss sharing , Prohibition of interest (Riba), Shariah standardsReferences
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