KARACHI: Meezan Bank's Shariah Supervisory Board has approved the guidelines for developing a local commodity Murabaha platform at Pakistan Mercantile Exchange (PMEX) while ensuring that all the requirements for a Shariah-compliant genuine sale transaction are met.
The decision was made during recently held meet at DarulUloom, Karachi, under the Chairmanship of Justice (Retd) Muhammad Taqi Usmani, said a press release here on Thursday.
The guidelines would facilitate real sale and purchase of commodities in the ready market; guaranteeing that a proper delivery mechanism is in place. This would further enable PMEX customers to avail physical delivery easily.
The SSB also carefully reviewed and discussed various solutions for solving excess liquidity situation for Islamic banks and evaluated the working procedures of three major international commodity Murabaha platforms including Bursa Malaysia, DMCC Dubai and London Metal Exchange used by International Islamic banks for managing their excess liquidity.
Restricted investment avenues for Islamic banks had been a major challenge, putting the international financial institutions at a competitive disadvantageous position. Islamic banking industry was looking to find solution for excess liquidity management while the government was looking for Shariah based financing solution to move away from interest based borrowing.
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