Musharka Financing for Poverty Alleviation in Pakistan

Iqbal, Nadeem; Haider, Najeeb; Akhtar, Muhammad Ramzan; Karim, Sumia Hafiz Abdul

doi:10.18052/www.scipress.com/ILSHS.37.71

ILSHS > Volume 37 > Musharka Financing for Poverty Alleviation in...

< Back to Volume

Musharka Financing for Poverty Alleviation in Pakistan

Full Text PDF

Abstract:

Unemployment, with other factors, leads to poverty. Poverty is an important characteristics of the developing countries including Islamic countries. Poverty causes human degradation in all aspects of life. It causes widespread diseaes and ignorance which contributes in lowering physical productivity and income level. In this way, poverty perpetuates overtime. Poverty eradication needs expansion of SMEs. SMEs need less capital and create more jobs in society. Employment opportunities increase as the SMEs spread in the country. The economic impact of SMEs can be measured by their contribution to output, employment, income, investment, export and other economic indicators. But expansion of SMEs needs flow of financial resources. Current arrangement of SMEs are linked to commercial banks. Commercial Banks do not find practicable to finance SMEs because processing case for small loans, their monitoring and recovery is costly to them. A comparison between Grameen Bank Methodology and Sudanees Islamic Bank is discussed in the paper. SMEs are financed through various institutions of Islamic financing. Among their institutions, Musharka financing is an effectiveinstument. Therefore, the paper is interested to explore the issue of Musharka financing for financing SMEs in Pakistan. The paper discusses both theoritcal and practical aspects of Musharka financing. In the above back ground this paper focuses on financial problem in the light of Islamic finance. It is the content of the paper that Islamic financial framework is better alternative to micro credit programmes. To alliviate the poverty, SMEs sector can play a better role which is facing the shortage of credit.

Info:

Periodical:

International Letters of Social and Humanistic Sciences (Volume 37)

Pages:

71-81

DOI:

https://doi.org/10.18052/www.scipress.com/ILSHS.37.71

Citation:

N. Iqbal et al., "Musharka Financing for Poverty Alleviation in Pakistan", International Letters of Social and Humanistic Sciences, Vol. 37, pp. 71-81, 2014

Online since:

August 2014

Authors:

Nadeem Iqbal, Najeeb Haider, Muhammad Ramzan Akhtar, Sumia Hafiz Abdul Karim

Keywords:

Islamic Financing, Musharka Financing, Poverty, Unemployment

Export:

RIS, BibTeX, Text

Distribution:

Open Access

This work is licensed under a
Creative Commons Attribution 4.0 International License

References:

[1] Abdalla Mustafa Gamal-Eldin (1995). Partnership Financing for Small Enterprises: Problems and Suggested Improvements, Paper presented to the workshop on Partnership Financing for small enterprises, Cairo, (1995).

[2] Akhtar M. Ramzan (1995). Practice and Prospects of Musharka Financing for Small Enterprises in Pakistan, paper presented to the workshop on partnership Financing for small enterprises, Cairo, (1995).

[3] Akhtar M. Ramzan, Partnership Financing of Microenterprises" International Journal of Social Economics 24(12) (1997).

DOI: https://doi.org/10.1108/03068299710193930

[4] Akhtar, M. Ramzan, Financing of Micro Enterprises: An Islamic Strategy for Poverty Alleviation, Annual Journal of International Islamic University Islamabad XI (2003).

[5] El-Basri, DR. M. E. T, Adam, Nawal Abdalla (1995). The impact of Partnership financing on Enterprises Development: the case Sudanese Islamic Bank (SIB), paper presented to the workshop on partnership Financing for small enterprises, Cairo, (1995).

[6] GOP, Economic Survey of Pakistan 2003-4.

[7] GOP, Economic Survey of Pakistan 2005-06.

[8] Hassan M. Kabir, Luis Renteria-Guerrer, The experience of Grameen Bank of Bangladesh in Community Development" International Journal of Social Economics 24(12) (1997).

DOI: https://doi.org/10.1108/03068299710193949

[9] Ibrahim Badr-el-Din A. (1995). Paper presented to the workshop on partnership Financing for small enterprises, Cairo, (1995).

[10] Nourain Asim (1995). ACORD Credit Programmes in Sudan: The Musharka Experience, Paper presented to the workshop on Partnership Financing for small enterprises, Cairo, (1995).

[11] The State Bank of Pakistan (1982). Detailed Musharka guidelines vide Circular No. 21, of June 30, (1982).

[12] http: /www. accaglobal. com/pdfs/smallbusiness/EESME. doc.

[13] Nadeem Iqbal, Naveed Ahmad, Zeeshan Haider, Sonia Anwar, International Letters of Social and Humanistic Sciences 5 (2014) 73-80.

DOI: https://doi.org/10.18052/www.scipress.com/ilshs.16.73

[14] Nadeem Iqbal, Naveed Ahmad, Komal Javaid, International Letters of Social and Humanistic Sciences 6 (2014) 60-73.

DOI: https://doi.org/10.18052/www.scipress.com/ilshs.17.60

[15] Nadeem Iqbal, Naveed Ahmad, Zeeshan Riaz, International Letters of Social and Humanistic Sciences 9 (2014) 14-25.

DOI: https://doi.org/10.18052/www.scipress.com/ilshs.20.14

[16] M. Shoukat Malik, Muhammad Nadeem, International Letters of Social and Humanistic Sciences 10(1) (2014) 9-19. ( Received 01 August 2014; accepted 09 August 2014 ).

Show More Hide

Cited By:

This article has no citations.