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Islamic Agricultural
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Topic to be discussed
 

Introduction:
Agricultural operations/seasonality

  • Farm Operations:
    • Land preparation
    • Sowing
    • Fertilizer/pesticides application
    • Weeding
    • Harvesting
    • Marketing
  • Non Farm Operations:
    • Rearing of livestock
    • Off farm enterprise

Murabaha

  • Structure of Shariah compliant Murabaha as used by Islamic Banks.
  • Financing of working capital requirements of farmers through Murabaha.
  • Murabaha contract/process flow.
  • Various risks associated with Murabaha financing and their management.
  • Murabaha price and booking of Murabaha.
  • Some accounting/prudential regulations applicable to Islamic banks/agricultural financing (AAOIFI + SBP).

Salam and Parallel Salam

  • Structure of Salam and Parallel Salam.
  • Application of Salam in financing liquidity requirements of farmers.
  • Use of Murabaha and Salam to finance various production and consumption needs of farmers. (Proper utilization of finance perspective).
  • Practical application in various seasonal operations of agricultural production cycle.

 Musharakah, Muzara’, and Diminishing Musharakah

  • Concept of Musharakah and its variants.
  • Shariah legitimacy of Muzara financing and application for share cropping.
  • Musharakah of bank, farmers, and agricultural extension advisory.
  • Concept of Diminishing Musharkah and application for financing agricultural machinery.
  • Various contracts involved in Diminishing Musharakah and Shariah issues regarding combination of contracts.
  • Group exercise regarding Diminishing Musharakah.

Ijarah ( Islamic Lease )

  1. Shariah Principals & Mechanism of Ijarah. 
  2. Use of Ijarah in Agricultural Finance
  3. Ijarah as ideal mode for financing for agricultural durable ( Tractors, Machinery etc )

Sukuk ( Islamic Bonds ) for Agricultural Sectors

  1. Muzara’ Sukuk  (An innovative product for corporate farming )
  2. Sukuk Al Musaqa, and Sukuk Al Muqarasa ( Agricultural Sector Sukuk )
  3. Structure, Operation & Performance of Agricultural Sukuk.

Takaful ( Islamic Insurance )

  1. What is Takaful
  2. Shariah Principle of Takaful
  3. Takaful Products for Crops & Livestock
Micro Takaful for Agri/Rural Development.
 
 
 
Bi-monthly Online Magazine
1
Issue: 034 (1st May - 1st July 2009)
 
International News
 
Pakistan as Emerging Market
 
Takaful
 
Sukuk & Islamic Funds
 
Articles
 
 
1
 
 
 
 
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