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The economy of Pakistan is categorized as a developing economy. It ranks as the 24th-largest based on GDP using purchasing power parity (PPP) and the 46th largest in terms of nominal GDP. With a population of 241.5 million people as of 2023, Pakistan's position at per capita income ranks 161st by GDP (nominal) and 138th by GDP (PPP) according to the International Monetary Fund (IMF).
Islamic banking, Islamic finance, or Sharia-compliant finance is banking or financing activity that complies with Sharia and its practical application through the development of Islamic economics. Some of the modes of Islamic finance include mudarabah, wadiah (safekeeping), musharaka, murabahah (cost-plus), and ijarah (leasing).
Sukuk is the Arabic name for financial certificates, also commonly referred to as "sharia compliant" bonds. Sukuk are defined by the AAOIFI as "securities of equal denomination representing individual ownership interests in a portfolio of eligible existing or future assets." The Fiqh academy of the OIC legitimized the use of sukuk in February 1988.
The KSE-100 Index is a stock index acting as a benchmark to compare prices on the Pakistan Stock Exchange (PSX) over a period.
BankIslami Pakistan LTD. is a Pakistani Islamic bank based in Karachi, Pakistan. It has 400+ branches in 150 cities in Pakistan.
Karachi is the financial and industrial capital of Pakistan. As of 2019, Karachi has an estimated GDP (PPP) of $164 billion. The city accounts about half of the total collections of the Federal Board of Revenue, out of which, approximately half are customs duty and sales tax on imports. Karachi produces about 30 percent of value added in large-scale manufacturing, 25% of the GDP, the World Bank identified Karachi as the most business-friendly city in Pakistan. In 2010, research by the global human resources company Mercer found Karachi to be the most inexpensive city in the world.
Pakistan State Oil is a Pakistani petroleum corporation involved in marketing and distribution of petroleum products. It has a network of 3,689 petroleum filling stations, out of which 3500 outlets serve the public retail sector and 189 outlets serve wholesale bulk customers. Pakistan State Oil is Pakistan's largest fuel marketing company.
Meezan Bank Limited is a Pakistani Islamic bank which is based in Karachi, Sindh. It is the largest Islamic bank and the largest bank based on market capitalization in Pakistan.
CIMB Group Holdings Berhad is a Malaysian universal bank headquartered in Kuala Lumpur and operating in high growth economies in ASEAN. CIMB Group is an indigenous ASEAN investment bank. CIMB has a wide retail branch network with 1,080 branches across the region.
The KSE-30 Index is a stock market index which tracks the performance of the top 30 most liquid companies listed on the stock exchanges in Pakistan. The index is based on a free float methodology in differentiation to other indices based of paid-up capital.
Islamic finance products, services and contracts are financial products and services and related contracts that conform with Sharia. Islamic banking and finance has its own products and services that differ from conventional banking. These include Mudharabah, Wadiah (safekeeping), Musharakah, Murabahah, Ijar (leasing), Hawala, Takaful, and Sukuk.
Faysal Bank Limited (FBL) (Urdu: فیصل بینک لمیٹڈ) is a Pakistani Islamic bank headquartered in Karachi. It is a subsidiary of Ithmaar Bank. It is named after Mohammed bin Faisal Al Saud.
Dawood Hercules Corporation Limited is a Pakistani publicly listed investment and holding company headquartered in Karachi. It operates its subsidiary Engro Corporation.
The Pakistan Stock Exchange (PSX), founded as Karachi Stock Exchange (KSE), is a stock exchange based in Karachi, Pakistan. PSX was classified by MSCI as a frontier market on 8 September 2021.
The S&P BSE 500 Shariah Index is an Indian stock market index that represent all Shariah compliant companies of the broad-based S&P BSE 500 index. The index is part of the family of S&P Shariah indices with the S&P 500 Shariah, S&P Europe 350 Shariah, and S&P Pan Asia Shariah among others. The S&P BSE 500 consists of 500 of the largest, most liquid Indian stocks trading at the Bombay Stock Exchange (BSE). The index represents nearly 93% of the total market capitalization on the exchange across a broad range of industries.
Profit and Loss Sharing refers to Sharia-compliant forms of equity financing such as mudarabah and musharakah. These mechanisms comply with the religious prohibition on interest on loans that most Muslims subscribe to. Mudarabah (مضاربة) refers to "trustee finance" or passive partnership contract, while Musharakah refers to equity participation contract. Other sources include sukuk and direct equity investment as types of PLS.
Muhammad Arif Habib is a Pakistani business magnate and stock market trader who is the founder of the Arif Habib Group. As of 2012, Arif Habib Group had 11,000 employees and annual revenue of Rs. 100 billion. He also serves as member of Boards of Governors of Karachi School of Business and Leadership (KSBL).
Sharia and securities trading is the impact of conventional financial markets activity for those following the islamic religion and particularly sharia law. Sharia practices ban riba and involvement in haram. It also forbids gambling (maisir) and excessive risk. This, however has not stopped some in Islamic finance industry from using some of these instruments and activities, but their permissibility is a subject of "heated debate" within the religion.
Engro Polymer & Chemical Limited (EPCL) is a Pakistani polymer manufacturing company based in Karachi, Pakistan. It is a subsidiary of conglomerate the Engro Corporation. The company has more than 70 percent local market share.
The PSX Dividend 20 Index is a stock index acting as a benchmark to compare prices on the Pakistan Stock Exchange (PSX) over a period. PSX Dividend 20 Index benchmark top 20 dividend paying companies at PSX based on the last 12-month dividend yield.
References
- ↑ "Index Tracker Funds".
- ↑ "No, the stock market is not an accurate indicator of the economy". Profit by Pakistan Today. 22 August 2021.