Shari’ah Appraisal of Mortgage backed Sukuk issued by Financial Institutions for House Financing in Naya Pakistan Housing Program: An Analytical Study

Authors

  • Naureen Akhtar Assistant Professor, University Gillani Law College, Bahauddin Zakariya University, Multan, Pakistan
  • Atia Madni Lecturer, Faculty of Shariah & Law, International Islamic University, Islamabad, Pakistan
  • Rao Imran Habib Assistant Professor, University Gillani Law College, Bahauddin Zakariya University, Multan, Pakistan

DOI:

https://doi.org/10.26710/reads.v5i1.571

Keywords:

Financial Product, Mortgage Backed Sukuk, House Financing, Naya Pakistan Housing Program, Shar??ah and Rahn

Abstract

This article is focused on conducting the Shar??ah 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 Shar??ah. 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 Shar??ah rulings with respect to the contract of Rahn. This endeavor is made to indicate Shar??ah 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 Shar??ah compliant and Shar??ah based. Pakistan is a candidate of Shar??ah 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.

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Published

2020-07-26

How to Cite

Naureen Akhtar, Atia Madni, & Rao Imran Habib. (2020). Shari’ah Appraisal of Mortgage backed Sukuk issued by Financial Institutions for House Financing in Naya Pakistan Housing Program: An Analytical Study. Review of Economics and Development Studies, 5(1), 135-144. https://doi.org/10.26710/reads.v5i1.571