Al Baraka Bank (Pakistan) limited offers a wide range of Shariah compliant products and services to cater the different needs of your business. If you need to purchase raw materials for your business or trade in your goods then the followings are the suitable products to meet your business demand.
Murabaha:
Murabaha is a sale of goods/commodities to a customer on a deferred price basis. In Murabaha, Al Baraka purchases a raw material/commodity on behalf of a customer and subsequently sells it to him on an agreed cost and profit basis. Both cost and profit are disclosed and agreed upon with the customer at the time of the sale of goods.
Musawamah Spot:
Musawamah Spot is a transaction where the bank procures the goods from the market through its agent and holds them under the supervision of the bank's approved Mucaddam. After that, those goods are sold to the customer in tranches or in full as per the requirement against cash/ spot payments, unlike Murabaha where inventory is sold at once on a deferred payment basis and profit is fixed for the tenure.
This results in non fixing of the profit for the entire tenure and customer has to pay the profit only from the day of disbursement of financing till the day of sale of goods.
Tijarah:
Tijarah is a short-term financing facility suitable for Exporters/ Corporates who need to generate liquidity by trading in their finished/ manufactured goods. In Tijarah, Bank purchases the finished/manufactured goods from the customer and sells them to the market or exports them. In most cases, the customer is made Bank’s agent to sell the goods in the market or export them.
Tijarah for Exporters:
Tijarah (Export) facility provides Shariah-compliant financing to exporters through the purchase of their finished goods for onward sale. The Bank acquires the goods and appoints the exporter as its agent to execute the export to the foreign buyer. This arrangement ensures the exporter receives upfront liquidity to manage working capital needs, while the export proceeds - realized in foreign currency - are applied towards settlement of the facility. Tijarah offers a flexible, interest-free solution for exporters seeking timely shipment execution and compliance with SBP’s export finance framework.
Istisna:
Istisna is a specific type of sale transaction whereby a commodity is transacted before it is manufactured. It is the contract for manufacturing goods as per particular specifications. Istisna Finance is used to cater the working capital requirements of customers involved in the manufacturing of goods. It is ideally suited for exporters and manufacturers who have export orders.
Istisna for Exporters:
Istisna (Export) facility provides Shariah-compliant pre-shipment financing to manufacturing exporters against confirmed export orders. Al Baraka finances the complete production cycle - including raw materials, wages, and overheads - based on the specifications of the export contract. Upon manufacturing and delivery to the Bank, the exporter acts as bank's agent to ship the goods to the foreign buyer. Export proceeds, received in foreign currency, are applied towards facility settlement - offering exporters a flexible, interest-free alternative that ensures timely production, shipment, and compliance with SBP's export finance framework.
