Abstract
This article is focused on conducting the Sharīʻah evaluation of mortgage backed sukuk by financial institutions in Pakistan under Naya Pakistan Housing Program for house financing. The financial product should strictly comply with the directives of Sharīʻah. This research work explores the structure of mortgage backed sukuk to spotlight the efficacy of mortgage backed Sukuk in house financing projects. Furthermore, this study discusses the Sharīʻah rulings with respect to the contract of Rahn. This endeavor is made to indicate Sharīʻah requirements pertaining to the validity of financial product of mortgage backed sukuk for house financing. This research article finds that the present government should adopt the financial product of mortgage backed sukuk for house financing under Naya Pakistan Housing Program because structure of mortgage backed sukuk is Sharīʻah compliant and Sharīʻah based. Pakistan is a candidate of Sharīʻah compliant housing finance because of constitutional responsibility of state of Pakistan under article 2-A and 227 of Constitution of Pakistan, 1973. Finally, suggestions have been put forward to issue mortgage backed securities for house financing project to the government of Pakistan.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.