challenges in islamic microfinance by ms. farida tariq

International Conference onIslamic Microfinance

CENTER OF ISLAMIC BANKING & ECNOMICS

Held At:

Faisal Auditorium Islamabad

Organized By :

Challenges in Islamic Microfinance

By: Mrs. Farida Tariq, CEO CWCD, Chairperson IMFN

Financial Literacy Awareness about the modes of Islamic Finance

in General Public Government Departments Courts of Law

Source of Funds Availability of Shariah Compliant Sources of

Funds.

Hesitation in adapting to Shariah Compliant Contracts

Fear of entering into Partnership (Musharaka, Mudaraba) agreements with Microfinance Institutions Rate of Returns cannot be fixed therefore the fear

of return on investments remains

Legal structure of Pakistan Hindrance in implementation of Islamic

Finance Products in essence Company’s Ordinance Section 42 refrains an

institution to enter into trading whereas the true essence of Islamic Financial Products is Trading

Standardization of Islamic Financial Products Implementation of a product must be

standardized in all practicing organizations for better understandability and faith of the borrowers

Minimum standards for practicing Islamic Microfinance must be set

Shariah Audits/Appraisals of Products and Procedures

Firms should exist which would certify the products and procedures of Islamic Microfinance Institutions to be Shariah Compliant which would be recognized by all national and international organizations.

Thank You

CENTER OF ISLAMIC BANKING & ECNOMICS

Head Office: 192- Ahmad Block, New Garden Town , Lahore, Pakistan Ph: +92-42-35913096-8, 35858990, 38407850 Fax: +92 -42-35913056E-mail : info@alhudacibe.comWeb: http://www.alhudacibe.com