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Murabaha means a sale of goods by a person to another under an arrangement whereby the seller is obliged to disclose to the buyer the cost of goods sold either on cash basis or deferred payment basis and a margin of profit included in the sale price of goods agreed to be sold.
| Description | Specific Product Details |
| Name of Product: | Murabaha |
| Basis of Pricing: | A fixed profit rate OR a floating profit rate linked with a benchmark, e.g. KIBOR, is offered keeping in view the prevailing market practices/dynamics |
| Financing Limits: |
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| Tenors: |
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| Target Customers: | Corporate/Commercial/SME |
| Security/Collateral: | On a case to case basis, e.g. hypothecation, charge on assets, mortgage of properties, pledge, lien on deposits, etc. as per facility approval |
| Repayment | |
| Murabaha Cost Component (i.e. Principal): |
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| Payment of Murabaha Profit Component: |
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Musawamah is a general kind of sale in which price of the commodity to be traded is stipulated between seller and the buyer without any reference to the price paid or cost incurred by the former. Thus it is different from Murabaha in respect of pricing formula. Unlike Murabaha, seller in Musawamah is not obliged to reveal his cost.
| Description | Specific Product Details |
| Name of Product: | Musawamah |
| Basis of Pricing: | A fixed profit rate OR a floating profit rate linked with a benchmark, e.g. KIBOR, is offered keeping in view the prevailing market practices/dynamics |
| Financing Limits: |
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| Tenors: |
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| Target Customers: | Corporate/Commercial/SME |
| Security/Collateral: | On a case to case basis, e.g. hypothecation, charge on assets, mortgage of properties, pledge, lien on deposits, etc. as per facility approval |
| Repayment: |
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Ijarah is a contract whereby the owner of an asset, other than consumables, transfers its usufruct to another person, for an agreed period, for an agreed consideration. In Ijarah, the corpus of the leased asset remains in the ownership of the lessor and only its usufruct is transferred to the lessee.
| Description | Specific Product Details |
| Name of Product: | Ijarah for plant & machinery/equipment/commercial vehicles |
| Basis of Pricing/Return: | Ijarah Rentals are determined by using any well known/ recognized bench mark as per prevailing market practices/dynamics e.g. KIBOR OR it can also be Fixed |
| Financing Limits: | Minimum: Per party limit as per SBP Prudential Regulations/as per facility approval Maximum: Per party limit as per SBP Prudential Regulations/as per facility approval |
| Tenors: | Minimum: 1 year Maximum: 7 years |
| Target Customers: | Corporate/Commercial/SME |
| Security/Collateral: | On a case to case basis e.g. exclusive ownership of Ijarah asset by the Bank, security deposit, hypothecation, charge on assets, mortgage of properties, pledge, etc. as per facility approval |
| Repayment: | Monthly Ijarah rental payments or as per facility approval |
Salam (advance payment against deferred delivery of goods) means a kind of sale whereby the seller undertakes to supply specific goods (Al-Muslam Fihi) to a buyer at a future date in consideration of a price fully paid in advance at the time the contract of sale is made. Salam can be effected in respect of ‘Dhawatul-Amthal’ which represent such commodities, the units of which are homogenous in characteristics and are traded by counting, measuring or weighing according to usage and customs of trade.
| Description | Specific Product Details |
| Name of Product: | Salam |
| Basis of Pricing/Return: | Profit on sale of Salam goods, after its delivery, to be charged, keeping in view the prevailing market practices/dynamics |
| Financing Limits: |
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| Tenors: | Upto 1 year |
| Target Customers: | Corporate/Commercial/SME |
| Security/ Collateral: | On a case to case basis, e.g. hypothecation, charge on assets, mortgage of properties, pledge, lien on deposits, etc. as per facility approval |
| Repayment: | On due date, the client will make the delivery of Salam goods (Muslam Fihi) to the Bank. The Bank will sell the Salam goods (Muslam Fihi) either directly or through its agent, to recover the amount advanced along with profit |
Diminishing Musharakah is a form of co-ownership in which two or more persons share the ownership of a tangible asset in an agreed proportion and one of the co-owners undertakes to buy in periodic installments the proportionate share of the other co-owner until the title to such tangible asset is completely transferred to the purchasing co-owner. Diminishing Musharakah can be created only in tangible assets. Diminishing Musharakah shall be limited to the specified asset(s) and not to the whole enterprise or business.
| Description | Specific Product Details |
| Name of Product: | Diminishing Musharakah (for commercial property/plant & machinery, equipment, etc) |
| Basis of Pricing/Return: | The rental amount is calculated with reference to a well known benchmark as per prevailing market practices/dynamics, e.g. KIBOR |
| Financing Limits: |
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| Tenors: | Upto 20 years |
| Target Customers: | Corporate/Commercial/SME |
| Security/Collateral: | On a case to case basis, e.g. hypothecation, charge on assets, mortgage of properties, pledge, lien on deposits, etc. as per facility approval |
| Repayment: |
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The Bank and customer enter into Musharakah, based on Shirkat-ul-Aqd, wherein:
(a)the Bank and the customer invest in the identified primary Operating Activities (or any identifiable segment thereof) of the customer’s business.
(b) Participate in the profits / (loss) generated by the Musharakah as per the agreed Profit Sharing Ratio (PSR) / proportion to their respective Investment ratio.
| Description | Specific Product Details |
| Name of Product: | Running Musharakah |
| Underlying Mode | Musharakah |
| Type of Product | Corporate / Commercial / SME |
| Basis of Pricing / Return | Profit Sharing Ratio |
| Financing Limits | Min / Max: Per party limit as per SBP Prudential Regulations / as per Facility approval. |
| Tenors | One Year |
| Target Customers | Corporate / Commercial / SME |
| Security / Collateral | On a case to case basis (as per facility approval) e.g. Hypothecation, Charge on Assets, Mortgage of properties, Pledge, lien on deposits etc. as per facility Approval. |
Istisna is a mode of sale, at an agreed price, whereby the buyer places an order to manufacture, assemble or construct, or cause so to do anything to be delivered at a future date. The commodity must be known and specified to the extent of removing any ambiguity regarding its specifications including kind, type, quality and quantity etc.
| Description | Specific Product Details |
| Name of Product: | Istisna |
| Underlying Mode: | Istisna |
| Type of Product: | Corporate /Commercial / SME |
| Basis of Pricing/ Return: | Floating profit rate linked with KIBOR, will be offered keeping in view the prevailing market practices/dynamics. |
| Financing Limits: | Min / Max: Per party limit as per SBP Prudential Regulations / as per Facility approval |
| Tenors: | To meet working capital requirements Upto 01 Year For fixed assets Up to 03 Years |
| Target Customers: | Corporate /Commercial / SME |
| Security/ Collateral | On a case to case basis e.g. Hypothecation, Charge on Assets, Mortgage of property, Pledge, lien on deposits etc. as per Facility Approval. |
| Description | Specific Product Details |
| Name of Product | Askari Islamic Finished Goods Financing Facility |
| Underlying Islamic Mode | Musawamah cum Wakalah |
| Basis for pricing | Matching KIBOR + Margin |
| Minimum & Maximum Financing Limit | To be decided on the basis of customer’s profile, bank’s internal policies and as per respective Prudential Regulations of SBP. |
| Currency | PKR and USD |
| Tenor | Minimum 15 Days to Maximum 24 Months |
| Repayment | From the sale proceeds of the finished goods. | Target Customers | Small & Medium Enterprises, Commercial & Corporate Customers |
| Security/ Collateral | Security will vary on case to case basis, and should be acceptable to the bank. |
| Description | Specific Product Details |
| Name of Product: | Islamic Export Refinance (IERF) |
| Underlying Mode: | Shariah compliant mode of finance (including but not limited to) Murabaha, Musawamah, Istisna, etc as approved by the Shariah Board of AKBL-IBSD. |
| Type of Product: | Corporate / SME |
| Basis of Pricing/ Return: | SBP refinance rate. |
| Financing Limits: | Bank’s internal assessment for allocation of limit, subject to SBP’s PRs. |
| Tenors: | As per SBP’s PRs / instruction on IERF. |
| Target Customers: | Corporate / SME |
| Security/ Collateral | Cash, Collateral, Pledge, Mortgage or hypothecation of asset etc or as per SBP’s PRs or Bank’s requirement. |