Muhammad Abubakar Siddique

• PHD Islamic Banking & Finance
• Lecturer at International Islamic University, Islamabad

This paper investigates the historical development of modern banking and finance, examining both interest-based and Islamic systems. The primary objective of this paper is to theoretically inspect the impact of Islamic legal flexibility on the global growth and adoption of modern Islamic finance, with a particular focus on Pakistan along with some...

Purpose The purpose of this study is to explain the opinions of the Muslim jurists available in the fiqh books so that they may be compared with the approaches adopted by modern scholars for defining the concept of riba. It is argued that the method of jurists was different from the one adopted by the modern Muslim jurists and Islamic economists. T...

The current study aims to explore the Sharī‘ah Governance (SG) and the management of Sharī‘ah Non-Compliance Risk (SNCR) in Islamic Banks (IBs) of Pakistan through the lens of Maqasid Sharī‘ah. For this purpose, the content analysis method was employed on the Sharī‘ah Governance Framework (SGF) issued by the State Bank of Pakistan (SBP), by concern...

Islamic banks cannot launch any operations and offerings unless a Sharī’ah approval is issued from their respective Sharī’ah boards. Hence, it becomes of utmost important and useful to find out the factors that affect the credibility of Sharī’ah approvals. To achieve this objective, first, six factors, namely, the methodology, format, product manua...

Purpose Since 2004, Pakistan carried the banking sector under the umbrella of the Islamic financial paradigm, consequently the Islamic Banking Industry (IBI) placed an upright position in the banking and financial market of Pakistan. In this context, this study aims to analyze the effect of Shariah-compliant products of the IBI on the pace of econo...

The main objective of the paper is to theoretically as well as empirically analyze the Sharī’ah compliance of running Musharkah (RM) being practiced by Islamic banks. The study employs both theoretical and empirical descriptive analytical approaches. The empirical part of the study uses primary data of 1000 Shariah scholar respondents. The data was...

The sharī‘ah invalidates the sale of non-existing items, but salam sale was exceptionally permitted to avoid interest-based financing in commercial as well as non-commercial transactions. Salam sale is an Islamic forward sale contract, which authorizes selling something that is not present during the time of the contract. Salam is a sale agreement...

Despite the large amount of hits on the concepts of Circular Economy (CE), Green Economy (GE), and Sustainable Development (SD), there is a dearth of coherent understanding of the interconnections between these concepts. Therefore, the aim of this chapter is to sketch out a broad and holistic framework to establish the interconnections between CE,...

Currencysalam is a financial product in the basket of Islamic finance that facilitates dealings in discounting of bills. Moreover, it allows provision for speculative future currency trading. This article shows that currencysalamis prohibited in the light of Islamic rules ofriba. Researchers have held three positions about modern currencies. The pa...

Sharīʿah objectives in relation to people are to secure interest of all and avert harm/hardship from them. These objectives have been taken care of in different Sharīʿah rulings. Regarding economics and finance, the principle of prevention of harm has been especially observed in the sphere of various Islamic contracts and business transactions. Thi...

Salam is a type of sale in which full price is paid in advance while the object of sale is delivered at a specified time in the future. The seller receives the price in exchange of an obligation to deliver later. The majority of jurists do not allow Salam in gold and silver currencies or monetary units. However, since some jurists consider it legit...

Islamic banks claim that they are moving their financing heads toward profit and loss base modes. Running Musharkah (RM) is one of these modes. It is claimed that RM is an alternate of conventional interest based running finance (RF). RM enables the Customer to draw and deposit funds against a RM finance limit offered by Islamic bank. It is reporte...

Darurah (necessity) and hajah (need) are the Maqasid al-Shariah protection tools in Islamic law. They provide a mechanism to an individual or institution to avert the actual as well as expected harm from them. Darurah and hajah eliminate the harm from people by granting them legal excuse about an act which is usually considered prohibited. Salam an...

To explore how Islamic banking could be promoted in Pakistan, one of the crucial factors is exploring the factors that determine the profitability of Islamic Banking Industry (IBI). The studies on the determinants of Islamic banking growth focus on a number of such internal and external determinants. Because of not taking into account both internal...

Salam is a type of sale in which full price is paid in advance while the object of sale is delivered at a specified time in the future. The seller receives the price in exchange of an obligation to deliver later. The majority of jurists do not allow Salam in gold and silver currencies or monetary units. However, since some jurists consider it...

The concept of discounting is a most important issue in the world of economics and finance from both conventional and Islamic perspective, because it relates to capital and interest. Islamic finance cannot depend on the conventional techniques of capital budgeting because of interest. Conventional capital budgeting techniques involve time value of...

The concept of discounting is a most important issue in the world of economics and finance from both conventional and Islamic perspective, because it relates to capital and interest. Islamic finance cannot depend on the conventional techniques of capital budgeting because of interest. Conventional capital budgeting techniques involve time value of...

Islamic Banking Industry (IBI) is an emerging industry in Pakistan. In comparison with the conventional banking, Islamic Banking is relatively a new concept, but it has shown magnificent growth in last few years. The two major and focal challenges; awareness and misconception are adversely affecting the IBIs growth in Pakistan. This article tries t...

The main purpose of this study is to examine the (relative) efficiency of the full-fledged Islamic banks compared to standalone Islamic banking branches of conventional banks (CBs) operating in Pakistan over the period 2007-2012. The Data Envelopment Analysis (DEA) is employed under CRS and VRS approach, which allows for the decomposition of effici...