Essentials of Islamic Modes of Financing
These Guidelines/Essentials are proposed to be enforced as Prudential Regulations for Islamic banks in due course. The State Bank invites suggestions and views for enforcing them as part of Prudential Regulations from all concerned, particularly the Shariah Scholars, Academics, Bankers and the Business community.
With dual objectives of facilitating the existing Islamic banking sector and the potential market players to develop Islamic banking products in particular and to create awareness about Islamic banking products in general, Model Agreements for following modes, vetted by the Shariah Board, have also been placed on SBP website (http://www.sbp.org.pk/).

1. Murabaha Facility Agreement
2. Musawamah Facility Agreement
3. Lease Agreement
4. Salam Agreement
5. Musharaka Investment Agreement
6. Istisna Agreement
7. Agreement for Interest free Loan
8. Mudaraba Financing Agreement
9. Syndication Mudaraba Agreement

It may be pointed out that these are model agreements, which can be modified, according to the products designed by the banks conducting Islamic banking business, with the approval of Shariah Board of Islamic commercial Banks or Shariah Adviser of banks having Islamic banking branches, ensuring that such changes are consistent with the principles of Shariah.

Suggestions and views in this regard may be sent to Mr. Pervez Said, Director, Islamic Banking Department / Adviser to the Governor on Islamic Banking, State Bank of Pakistan, Karachi through mail / fax (021-9212472) or e-mail (pervez.said@sbp.org.pk).

Essentials of Islamic Modes of Financing
Model Agreements