How to Fulfill the Demanding Need of Shariah Talent/ Scholar to Facilitate Islamic Fund Industry...
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Transcript of How to Fulfill the Demanding Need of Shariah Talent/ Scholar to Facilitate Islamic Fund Industry...
How to Fulfill the Demanding How to Fulfill the Demanding Need of Shariah Talent/Need of Shariah Talent/
Scholar to Facilitate Islamic Scholar to Facilitate Islamic Fund IndustryFund Industry
Abdul SamadAbdul Samad
Shariah AdvisorShariah Advisor
The Bank of KhyberThe Bank of Khyber
Purity of Transactions and Purity of Transactions and Building Reliance on Islamic Building Reliance on Islamic
FinanceFinance Islamic Finance industry is presently Islamic Finance industry is presently
growing at a very high pace. growing at a very high pace. One of the critical issues the industry is One of the critical issues the industry is
facing is the matter of cleanliness in facing is the matter of cleanliness in transactions which, in longer run, will transactions which, in longer run, will ensure reliance of Muslim Ummah in this ensure reliance of Muslim Ummah in this model of Islamic finance and banking. model of Islamic finance and banking.
If this issue, at this stage, is ignored, it If this issue, at this stage, is ignored, it may result in a disaster in the name of may result in a disaster in the name of Islamic Finance. Islamic Finance.
Strategy to Build Reliance on Strategy to Build Reliance on Islamic Finance and BankingIslamic Finance and Banking
In Pakistan the currently on going process of In Pakistan the currently on going process of Shariah compliance is looking at 3 aspects:Shariah compliance is looking at 3 aspects:
1.1. which is inception and conceptualization of an Islamic which is inception and conceptualization of an Islamic product, product,
2.2. structuring the rules and principles as according to Shariah, structuring the rules and principles as according to Shariah, 3.3. documentation procedures. documentation procedures.
To ensure the above three State Bank of To ensure the above three State Bank of Pakistan provides following sound decisions:Pakistan provides following sound decisions:
1.1. Every IFI is required to appoint Shariah Advisor with Every IFI is required to appoint Shariah Advisor with qualified Shariah background.qualified Shariah background.
2.2. Every IFI is required to appoint Shariah Audit and Shariah Every IFI is required to appoint Shariah Audit and Shariah Compliance department/unit.Compliance department/unit.
Where we are to day?Where we are to day?
The present day on-site or off-site The present day on-site or off-site supervisory guidelines are not enough to supervisory guidelines are not enough to judge and evaluate the functions of Islamic judge and evaluate the functions of Islamic banks and Islamic financial institutions banks and Islamic financial institutions from the Shariah point of view.from the Shariah point of view.
One structure can not become Shariah One structure can not become Shariah compliant on the basis of approval of compliant on the basis of approval of Shariah Board or Shariah Advisor only until Shariah Board or Shariah Advisor only until that is properly implemented. that is properly implemented.
General IssuesGeneral Issues
Westerns Developed a lot of new Westerns Developed a lot of new Institutions on their own design, and Institutions on their own design, and we, the Muslims, did not develop any we, the Muslims, did not develop any new institution, as we were not in a new institution, as we were not in a position for the same. position for the same.
Instead of Developing a new Instead of Developing a new Institution we tried to bring changes Institution we tried to bring changes in the Western Institutionsin the Western Institutions
General IssuesGeneral Issues
As Muslims were out of the Scene, As Muslims were out of the Scene, they did not develop any expertise to they did not develop any expertise to counter the situation. We the counter the situation. We the Muslims did not prepare any HR for Muslims did not prepare any HR for the purpose.the purpose.
SolutionsSolutions
Training Training Establishment of institutions by Establishment of institutions by
government and private organization. government and private organization. Implementation of The AAOIFI regulation of Implementation of The AAOIFI regulation of
a minimum of three Shariah advisors a minimum of three Shariah advisors serving on a Shariah Supervisory Board serving on a Shariah Supervisory Board (SSB). (SSB).
Opportunity for fresh graduates. Opportunity for fresh graduates. Criteria should be fixed for responsible Criteria should be fixed for responsible
employees employees
Biggest ProblemBiggest Problem
We always demand others to do We always demand others to do something and ignore ourselvessomething and ignore ourselves
Very few of us would be ready to Very few of us would be ready to play their role. We do never ask play their role. We do never ask
“ “ What can I do?”What can I do?”
Last WordLast Word
Don,t wait for others. Start your own Don,t wait for others. Start your own job today. In a nutshell it can be;job today. In a nutshell it can be; Read Books on Islamic FinanceRead Books on Islamic Finance Try to understand Quran and SunnahTry to understand Quran and Sunnah Try to implement in your own LifeTry to implement in your own Life Try to work out solutions of problems in Try to work out solutions of problems in
the light of Quran and Sunnahthe light of Quran and Sunnah Be ready to sacrifice Time, Money, Be ready to sacrifice Time, Money,
Status, etc for the cause of IslamizationStatus, etc for the cause of Islamization