The two-day comprehensive workshop sponsored by the National Bank of Pakistan on "Practical aspects and application of Islamic banking" ended at a hotel here, on Thursday. It was jointly organised by the College of Management Sciences PAF KIET and Business Solutions.
Financial executives from leading banks of the country participated in the workshop. Ismail Iqbal, former chairman, Karachi Stock Exchange and a leading stockbroker inaugurated the event. He declared a scholarship for the top student specialising in finance at PAF KIET. Mujeeb Baig, M. Najeeb Kahan and Hassan Kaleem acted as facilitators.
The subject matters were exhaustively covered with special emphasis on practical aspects and application of systems and procedures of Islamic banking. The Shariah compliance, following of prudential regulations and difference between conventional and Islamic banking was discussed through case studies and sharing of personal experiences of participating bank executives.
Facilitators also covered resource mobilisation and utilisation, foreign trade transactions, liquidity management, etc. They explained that deposits are received by Islamic banks on the liability side either on Musharika basis or on Modaraba basis.
At present, Islamic banks are utilising their funds through Ijara, Murabaha and diminishing Musharika. An effort to induce Musharika-based financial instrument has also been made successfully.
However, due to certain accounting taxation and prudential regulation issues, variety of products on the basis of Shirkah and Modaraba are yet to be introduced widely.
The Islamic banks have been able to manage liquidity on Musharika and Modaraba basis.
Syndicated financing is also being made on collective restrictive Modaraba basis. Exporters can avail of the financing facilities from the Islamic banks, as well as the products for dealing trade finance are also available with the Islamic banks.
Long-term capital assets financing has also been done by the Islamic banks and they are looking ahead to issue Islamic bonds (Sukuk).
Shafqaat Ahmed, Country Head, Albaraka Islamic Bank, gave away the certificates and plaques to the participants and facilitators. Dr Javed Akber Ansari, Dean, College of Management Sciences PAF KIET, thanked the chief guest, facilitators, participants and organisers.-PR
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