Is it Bad to Prefer Debt Over Equity?

Professor Humayon Dar

Dr Anas Zarka, a pioneering Islamic economist, reacted to a recent report published in The Economist, entitled ‘Why the World is Addicted to Debt’ (The Economist, May 17, 2015) by asserting that the marginal utility of more debt to an addictive debtor increases, the more indebted he becomes. Dr Usamah Othman, of […]

By |June 4th, 2015|0 Comments

Pause for Thought – Lahore as a Global Centre of Excellence for Islamic Finance?

COMSATS Institute of Information Technology (CIIT) Lahore organized its third Global Forum on Islamic Finance (GFIF) at Pearl Continental Hotel Lahore on March 10-11, 2015. Delegates and speakers from around the world, including from UK, USA, Malaysia, Bahrain, Saudi Arabia, Germany, Lebanon, Canada and many more, attended the event. It was a well-organised conference […]

By |March 1st, 2015|0 Comments

Pause for Thought – November 2014

Money in its various forms dominates the world, on all levels — individual, familial, communal, social and international. In the monetary systems adopted by almost all countries, it takes the shape of paper notes and coins. Individual wealth, corporate assets and national production are all denominated in terms of one currency or the other. […]

By |November 8th, 2014|0 Comments

Pause for Thought

Prior to the financial crisis that started in 2001, there was serious interest from a number of countries in becoming hubs for Islamic finance. These countries included Malaysia, Singapore and Hong Kong in the East; UK, France, Italy, Luxembourg and Ireland in the West; and Bahrain, Qatar and UAE in the Middle East. Even […]

By |August 10th, 2014|0 Comments

Pause for Thought

Working in Islamic financial institutions (IFIs), a certain culture is expected from being part of the Islamic banking and finance (IBF) industry. There is no doubt that IBF is primarily a business phenomenon, i.e., it does not have a hidden political or religious agenda, yet it cannot be denied that IBF has a civic […]

By |May 6th, 2014|0 Comments

Charitable Giving: Donation-Based Model of Banking

The conventional banking model is based on deposits. Banks accept deposits and use the money to offer interest-bearing loans to individuals and businesses. This is a standard model used all over the world, and is now being used even by many microfinance institutions that emerged as non-bank entities from the 1960s onwards.

In Pakistan, the […]

By |February 2nd, 2014|0 Comments

Common Pools: Crowd Financing and ‘Committee’ System

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 […]

By |November 7th, 2013|0 Comments

Pause for Thought

Professor Humayon Dar

With nearly 190 million people, Pakistan is the sixth largest populated nation in the world. It is therefore not surprising to find Pakistanis spread globally. The Pakistani diaspora, comprising almost 3% of the country’s population, are serving as guest workers with the largest concentration in the Gulf countries. A significant number of […]

By |August 8th, 2013|0 Comments

Islamic Banking or Banking for Muslims?

Professor Humayon Dar

Many Islamic bankers tend to believe that Muslims are using Islamic financial services because such services are offered to them; otherwise (according to them) customers are indifferent between Islamic and conventional products. This thinking may be partially true. It is certainly the case where Islamic banking is either non-existent or insignificant in […]

By |May 9th, 2013|0 Comments

Pause for Thought

Professor Humayon Dar

Many advocates of Islamic banking suggest using gold as a replacement for the money created through the interest rate mechanism. This is an interesting proposition, especially in the context of Malaysia where the state of Kelantan has already started using gold and silver coins as a potential replacement for the federally issued […]

By |February 10th, 2013|0 Comments