HD Blog/News

Human resource development: Training in Islamic banking comes at centre of strategy

Posted By: admin on Jan 20, 2014 in Islamic Banking & Finance
Islamic Bank

With the change in government after the May 2013 elections, there is a surge in interest in reviving Islamic banking in Pakistan. The government has responded well by committing to use a Shariah-compliant structure of financing under the Prime Minister’s Business Loans Programme for the Youth. Finance Minister Ishaq Dar has also set up a …

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Economics and the popularity of private tuitions in Pakistan.

Posted By: admin on Dec 16, 2013 in Economy & Business, Education
Private Tuitions in Pakistan

According to a survey, 67% and 59% of school-going children in urban and rural areas, respectively, attend private tuition centres in the evening. Private tuition is an obsession and, in some cases, an absolute need felt by the parents aspiring good careers for their children. It is an obsession of such a magnitude and intensity …

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Booming business: Industry recognition, awards and business

Booming Business

There are numerous awards, prizes and accolades in business, politics, academia and society to recognise excellence and leadership roles played by individuals and institutions. In addition, various indices, rankings and polls are used as performance indicators for a number of activities in different fields. From the Nobel Prize to Transparency International’s Corruption Index, all these …

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A debate on whether Twitter stock is Shariah compliant

Posted By: admin on Nov 18, 2013 in Economy & Business
Twitter Stock

On Thursday, November 7, 2013, Twitter went public with a well-publicised IPO, sparking interest from investors around the world. Before this, Facebook went for a rather controversial IPO on May 18, 2012. Edbiz Consulting, a London-based Islamic finance advisory firm that has partnered with Nasdaq to develop a Shariah-compliant version of Nasdaq100, reported that Twitter …

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Shariah-compliant solutions: Government must devise Islamic finance strategy to attract investment

Posted By: admin on Nov 04, 2013 in Islamic Banking & Finance
Shariah Compliant

At the recently concluded World Islamic Economic Forum in London (October 29-31), a Pakistani delegation headed by Finance Minister Ishaq Dar and Punjab Chief Minister Shahbaz Sharif presented investment opportunities in Pakistan, especially in the power sector in the province of Punjab. The technical presentation presented by the delegates was impressive and there was some …

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Common pools: Crowd Financing and ‘Committee’ System

Posted By: admin on Oct 20, 2013 in Economy & Business
Common Pools

Like other countries, developed and developing alike, there has been huge emphasis on financial inclusion in Pakistan. A number of institutions (including charities and other businesses in the services and utilities sector) are using electronic media to raise and transfer money as part of their payments or credit systems. Many businesses, however, continue to use …

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Conflicting interests: Moral hazard and cost of doing business in Pakistan

Conflicting interests

The notion of agency costs in economics is somewhat different from how lawyers tend to define it. It has two components – moral hazard and adverse selection. Moral hazard is the risk that a party to a transaction will act in its own interest at the expense of the other transacting party. Moral hazard arises …

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Financial machine: Debt-based system and resource-based economies


The existing financial system based on a combination of credit and equity has played an important role in economic growth and development in developed countries of the world. Despite ups and downs and consequent instability of the system, provision of credit remains a catalyst for economic growth. It has improved overall standards of living but …

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Fatwa and transaction costs in Islamic finance

Posted By: admin on Sep 09, 2013 in Islamic Banking & Finance

Shariah advice on structures of Islamic financial products and on compliance of such products with the Islamic law are a necessary pre-requisite and a regulatory requirement for financial institutions in many countries, including Pakistan. Consequently, Shariah costs are included in the transaction costs associated with Islamic financial products. Financial fatwas play an integral part in …

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Mudaraba — an alternative model for investment banking in M’sia

Posted By: admin on Sep 09, 2013 in Islamic Banking & Finance

Pakistan is perhaps the only country in the world with a vibrant Mudaraba business. With the promulgation of Mudaraba Companies and Mudarabas (Floatation and Control) Ordinance in 1980 followed by Mudaraba Companies and Mudaraba Rules 1981, Pakistan established an alternative investment and finance model that could be used for developing a viable governance framework for …

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