Bay Salam: A Proposed Model for Shariâ??ah Compliant Agriculture Financing

Asim Ehsan () and Muhammad Asghar Shahzad
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Asim Ehsan: International Islamic University, Islamabad
Muhammad Asghar Shahzad: International Islamic University, Islamabad

Business & Economic Review, 2015, vol. 7, issue 1, 67-80

Abstract: This study focuses on the discussion of Salam financing and its prospects in agriculture sector of Pakistan economy. For this purpose, a model of Salam financing is proposed. This model can be used for a single-season crop financing as well as for multiple-seasons crop financing; though the multiple crop finance is relatively complex to execute. Primary objective of the model is the elimination of middleman involvement and specifically addressing problems faced by the small scale farmers. The study also discusses a brief comparative note on the Salam models proposed in the literature and their problems. Risks associated with the proposed model of this study are also mentioned in detail along with their mitigation procedures

Keywords: Bay Salam financing; agriculture financing; farmer; agriculture financing (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:bec:imsber:v:7:y:2015:i:1:p:67-80

DOI: 10.22547/BER/7.1.4

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