Challenges in islamic microfinance by ms. farida tariq

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<ul><li>1.International Conference onIslamic Microfinance Organized By : CENTER OF ISLAMIC BANKING &amp; ECNOMICSHeld At:</li></ul> <p>2. Challenges in Islamic MicrofinanceBy: Mrs. Farida Tariq, CEO CWCD, Chairperson IMFN 3. Financial Literacy Awareness about the modes of Islamic Finance in General Public Government Departments Courts of Law 4. Source of Funds Availability of Shariah Compliant Sources of Funds. Hesitation in adapting to Shariah CompliantContracts Fear of entering into Partnership(Musharaka, Mudaraba) agreements withMicrofinance Institutions Rate of Returns cannot be fixed therefore the fear ofreturn on investments remains 5. Legal structure of Pakistan Hindrance in implementation of Islamic FinanceProducts in essence Companys Ordinance Section 42 refrains an institution toenter into trading whereas the true essence of IslamicFinancial Products is Trading 6. Standardization of Islamic FinancialProducts Implementation of a product must be standardized inall practicing organizations for betterunderstandability and faith of the borrowers Minimum standards for practicing IslamicMicrofinance must be set 7. Shariah Audits/Appraisals of Products andProcedures Firms should exist which would certify the productsand procedures of Islamic Microfinance Institutionsto be Shariah Compliant which would be recognizedby all national and international organizations. 8. Thank You CENTER OF ISLAMIC BANKING &amp; ECNOMICS Head Office: 192- Ahmad Block, New Garden Town , Lahore, Pakistan Ph: +92-42-35913096-8, 35858990, 38407850 Fax: +92 -42-35913056 E-mail : Web: </p>