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The Farz Foundation recently hosted the first National Islamic Microfinance Conference in Lahore, Pakistan, in an effort to develop solutions for the microfinance industry in Pakistan.
Among the ideas proposed to move away from lending practices that “create overindebtedness and violate the principles of customer’s ethic” is the Farz Methodology, a microfinance model promoted by Farz. The methodology, based on Islamic principles, offers free business and health education to clients, prior to offering funding, in deference to Sadqae Jariah (social responsibility). Farz offers loans to clients for the purchase of assets, such as real estate and business equipment. The loans, called murabaha, are interest-free but stipulate that the lender be entitled to a 24-percent profit on the proceeds from the asset.

The first National Islamic Microfinance conference was held on 29th of January 2011 in the Lahore Chamber of Commerce and Industry . The conference was attended by Iftikahr Malik, Vice Presiden Sarrc Chamber of Commerce and Industry, Tahir Malik, Chairman Trafco Group of Companies , Mr. Zulfiqar Khokhar Additional Direcroe Islamic Banking & Finance Department State Bank of Pakistan, Mufty Iftikhar Baig, Sharia Advisoe of Albaraka bank Mufty Mahmood, Sharia Advisor Farz Foundation , Tariq Shafi, Regional Chairman FPCCI.and Ms Humera Awais Shahid, member Provincial Assembly.

Qatar Charity is spearheading a campaign to collect funds to be donated to relief initiatives benefiting flood victims from Australia, Pakistan, Sri Lanka and Thailand.
The “Fight the Floods” campaign was launched offering the people in Qatar the opportunity to directly deposit to the authorised Qatar Charity "Fight the Floods" bank account: A/C Number: 100024470 at Qatar Islamic Bank.

To assemble international Islamic Microfinance organizations under one platform, Islamic Microfinance Network (IMFN) has been established in Lahore – Pakistan. The initial member countries of Islamic Microfinance Network are Iraq, Jordan, Yemen, Ghana, Mauritius and Kazakhstan.
The objective of this network is to provide best methodologies of Islamic microfinance, Shariah guidelines, and lasting relations and manpower to the industry.

Meezan Bank Ltd (MBL) has emerged as the tenth largest bank in terms of branches. She is the first full-service Islamic bank of Pakistan. Its subsidiary, Al Meezan Investment has also attained the status of the largest private sector asset management company with Rs25 billion assets under management.
Globally and locally Islamic banking in one of the fastest growing segments of the banking sector and without being prejudiced towards conventional banks, it is evident that during difficult times globally Islamic banks have performed better as compared to conventional banks mainly because each transaction in Islamic banking is backed by assets and is designed to cater a real economic transaction. On top of this more prudent risk evaluation and willingness to help the client avoiding a default in difficult times keeps the delinquency rate low.

The issue, known as the Government of Pakistan Ijara Sukuk, is a three-year bond.
The central bank said in October it planned to raise 80 billion rupees by selling Islamic bonds, with the first auction on Nov. 8, with settlement on Nov. 15, in which it raised 51.84 billion rupees .

Pakistan’s largest Shariah funds plan to bid for the 80 billion rupees of Islamic debt the government will offer in coming weeks after a 14-month suspension of sales.
Pakistan is selling the debt as the nation’s Islamic banking assets increased an average 30 percent in the past four years. Investors might prefer securities due in a year or less after record floods in August pushed up prices of goods and forced the central bank to raise its benchmark interest rate to the highest level in 17 months, according to Al Meezan and NBP Fullerton.

The State Bank of Pakistan Thursday notified the de-scheduling of Al Baraka Islamic Bank Pakistan operations on account of its merger with and into Emirates Global Islamic Bank Limited with effect from the close of business on October 29, 2010. The State Bank has also notified the change of name of Emirates Global Islamic Bank Ltd to AlBaraka Bank (Pakistan) Ltd on 29.10.2010.

A key joint venture of Qatar Islamic Insurance Company in Pakistan has in collaboration with a local bank and FWU AG launched lucrative Shariah-compliant long-term savings schemes.
Pak-Qatar Family Takaful Limited has inked a deal in Karachi with Dawood Islamic Bank Limited and FWU AG to provide bank customers long-term savings plans enabling them to secure their future financially.
According to the strategic agreement, Dawood Islamic Bank would distribute Shariah compliant Bancassurance (BancaTakaful) products across its branch network.
The agreement was signed by CEO Pak-Qatar Family Takaful P Ahmed, and Pervez.
These products will provide DIB’s customers with Long term Savings plans specifically catered to fulfil their future financial needs.

Nine member countries have been approved to receive financing. They are Indonesia, Uzbekistan, Bangladesh, Pakistan, Sudan, Turkmenistan, Gambia, Mauritania and Albania.
The financing includes technical assistance in the form of grants for development projects in Benin, Chad, Togo, the GCC and grants and concessional loans for Sudan.
The approved financing also includes health and educational projects directed towards communities in non-member countries including Congo, Fiji, India and South Africa.

The Islamic Development Bank (IDB) will more than double the size of bonds, or sukuk, issued under an ongoing programme to $3.5 billion to help meet financing needs mainly from flood-ravaged Pakistan.
In 2009, the Saudi-based triple-A lender issued an $850 million sukuk which was the first tranche of a $1.5 billion bond. The issue was part of the $6 billion programme it established to soften the impact of the financial crisis on its member countries.

The leading global Islamic Finance accounting regulator is introducing conditions for contracts that comply with religious laws, seeking to standardize an industry with $1 trillion in assets under management.
The Bahrain-based Accounting & Auditing Organization for Islamic Financial Institutions will for the first time provide a “Shariah-compliant way” for parties to enter and exit contracts, Mohamad Nedal Alchaar, secretary-general of the agency, in Manama.
While civil law already offers legal cover in disputes, counterparties want protection based on Shariah principles, according to Dawood Islamic Bank Ltd. in Karachi, Pakistan. Establishing a global standard would bolster confidence for sukuk investors, said Madzlan Mohamad Hussain, a partner at Zaid Ibrahim & Co., Malaysia’s biggest law firm.

IDb will more than double the size of bonds, or Sukuk, issued under an ongoing program to $3.5 billion to help meet financing needs mainly from flood-ravaged Pakistan.
In 2009, the Saudi-based triple-A lender issued an $850 million Sukuk which was the first tranche of a $1.5 billion bond. The issue was part of the $6 billion program it established to soften the impact of the financial crisis on its member countries.
Pakistan, Afghanistan and Senegal, among the world's 50 poorest nations, are turning to Islamic banking to spur economic growth by encouraging people to take out loans and open savings accounts.

Islamabad —Pakistan, Afghanistan and Senegal, among the world’s 50 poorest nations, are turning to Islamic banking to spur economic growth by encouraging people to take out loans and open savings accounts. Outstanding domestic bank lending accounted for 3.5 percent of Afghanistan’s gross domestic product in 2008, 25 percent in Senegal, 27 percent in Nigeria and 46 percent in Pakistan, according to data compiled by the World Bank. The rates compare with 224 percent in the U.S. and 115 percent in Malaysia, a global hub for finance that conforms with Shariah principles.
Developing Islamic nations have shunned banking in part because of the religion’s ban on interest, limiting access to funds for project financing and stunting business growth, according to the International Monetary Fund. Governments should improve regulations, products and institutions that comply with Shariah law to accelerate the industry’s development, Patrick Imam and Kangni Kpodar, economists at the IMF, said in a telephone interview from Washington on Sept. 14.

Senegal, Pakistan and Afghanistan, among the world’s 50 poorest nations, are turning to Islamic banking to spur economic growth by encouraging people to take out loans and open savings accounts. Developing Islamic nations have shunned banking in part because of the religion’s ban on interest, limiting access to funds for project financing and stunting business growth, according to the International Monetary Fund. The concept of risk-sharing in Shariah banking that prohibits interest payments would be more useful in Muslim countries because their economies are less diversified, the IMF economists said.

The following borrowers are expected to sell Islamic bonds:

TURKEY: Citigroup Inc. plans to arrange more sales of Islamic bonds from Turkey after managing a $100 million issue for Kuveyt Turk Katilim Bankasi AS, said Hulusi Horozoglu, director of global Islamic banking at Citigroup.

PAKISTAN: The South Asian country plans to sell sukuk maturing in a year or less in the domestic market by the end of this month, according to an e-mailed statement from Syed Wasimuddin, a spokesman for State Bank of Pakistan, the nation’s central bank.

CAGAMAS BHD.: Malaysia’s national mortgage company plans to sell more Islamic bonds this month following a sale in August under its 5 billion ringgit ($1.6 billion) sukuk program, the Business Times reported, citing an unidentified person familiar with the proposal.

INDONESIA: plans to sell 2 trillion rupiah ($224 million) of Islamic bonds by private placement this year, said Rahmat Waluyanto, a director at the Ministry of Finance.

The gesture came in response to a call from President Sheikh Khalifa bin Zayed Al Nahyan. The money was handed over to the UAE Red Crescent Authority (RCA).

Pakistan’s government plans to sell Islamic bonds in the domestic market by the end of this month, according to the central bank’s spokesman. State Bank of Pakistan is seeking to sell Islamic bonds maturing in a year or less

World Congress of Muslim Philanthropists Launches “Pakistan Reconstruction Fund” Marking the Second World Humanitarian Day

FOR IMMEDIATE RELEASE:

Oak Brook, Illinois, August 19, 2010: The World Congress of Muslim Philanthropists (WCMP) marks today the second World Humanitarian Day by establishing “Pakistan Reconstruction Fund” to rehabilitate communities severely affected by the catastrophic floods in the country.

WCMP expresses its deep concern about massive devastation resulting from the torrential rains that flushed away villages, destroyed about 3.2 million hectares of standing crops, killed hundreds of people and displaced about 14 million people, according to UN estimates.

UN Secretary-General Ban Ki-moon called for the rapid delivery of assistance for millions of people in flood-stricken Pakistan, as he saw for himself the devastation wrought by the recent disaster.

Online Donations via http://www.doctorsworldwide.org/worldpay

PRESS RELEASE

For Immediate Release

August 9th 2010

Doctors Worldwide: British Medical Charity opens hospital in Nowshera District to provide medical treatment and aid for flood survivors.

Doctors Worldwide, a UK based medical relief charity, has opened up a hospital in Peer Sabak, Nowshera District, to provide medical care for an estimated 30,000 population affected by the devastating floods.

Nowshera’s hospitals have been flooded and are unable to function since the floods started over a week ago. Further heavy rainfall is expected in the area today, hampering relief work.

“Doctors Worldwide has identified a building in Nowshera District that we are using as a hospital. The nearest hospital is 22km away and inaccessible due to the damage to roads and survivors of the disaster are in many cases too weak and frightened to make the journey,’’ said Abdul Wahab, Doctors Worldwide, Field Coordinator in Nowshera.