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.

In order to meet Medium to Long Term Financing requirements or to expand the Business operations, the following solutions are available to our valued customers:

Running Musharakah (Local / Export):

A Shirkat-ul-Aqd - based financing facility in which Al Baraka Bank (Pakistan) Limited partners with customers by contributing capital towards their business operations and sharing profit or loss based on the actual performance of the venture. For exporters, this arrangement can be tailored to provide working capital for fulfilling confirmed export orders, enabling them to manage procurement, production, and shipment costs. Export proceeds, realized in foreign currency, are applied towards settlement, ensuring a transparent, Shariah-compliant structure that supports both domestic trade and international business growth.

Ijarah:

The concept of Ijarah is similar to Leasing in conventional Banking. Ijarah is a contract whereby the owner (Bank) of assets transfers its benefits (usufruct) to the customer for an agreed period, at an agreed consideration. In Ijarah, the corpus of the leased asset remains in the ownership of the lessor (Bank) and only its usufruct is transferred to the Lessee (Customer). During the entire term of Ijarah, the Bank being the owner of the assets retains the title of ownership and also, bears all risks and rewards pertaining to ownership. All the risks related to the usage of the assets are borne by the lessee (customer). Ijarah can be availed for the financing of plants, machinery, buildings and all the other fixed assets.

Diminishing Musharaka

Diminishing Musharakah is a commonly used mode of financing for the acquisition of fixed assets. It is a type of Musharakah where the Bank and Customer jointly purchase the asset in defined ratio of ownership. The Bank’s ownership of the asset is divided into a number of units and the customer periodically purchases these units from the bank over a specified period. Over time, the customer purchases all units owned by the bank and becomes the sole owner of the asset.

Project finance is the long-term financing of infrastructure and industrial projects based upon the projected cash flows of the project. Al Baraka Bank offers tailor-made solutions for complex projects through its range of Shariah compliant products and services. Through project financing, Al Baraka offers solutions for infrastructure, industrial and other long-term projects.

Islamic Export Refinance Scheme (IERS)

Islamic Export Refinance is a unique Shariah compliant product provided to exporters to meet their special requirements in a completely Shariah compliant manner.

The purpose of this scheme is to boost the export of value-added commodities by ensuring liquidity to exporters availing financing facilities at subsidized rates. Customers can also avail Shariah compliant bill discounting facility at subsidized rates under this scheme.

Type of Customers	Exporters who manufacture or trade in value added commodities and services
Mode of Financing	Murabaha / Salam / Istisna / Tijarah

*Terms and conditions are subject to change as per SBP’s policies from time to time.

Islamic Finance Facility for storage of Agriculture Produce (IFFSAP):

Islamic Finance Facility for storage of Agriculture Produce (IFFSAP) is a refinance scheme to develop the agricultural produce marketing and enhance storage capacity. This facility is for Corporate / CBSME customers for establishment, expansion, balancing, modernization & replacement (BMR) of steel / Metal / Concrete Silos, Warehouses & Cold Storage facilities for storing agricultural produce.

Mode of Financing	Diminishing Musharakah
Maximum Financing Amount	Rs. 500 million per single project
Tenor	Maximum 10 years

*Terms and conditions are subject to change as per SBP’s policies from time to time.

Islamic Financing Scheme for Renewable Energy (IFRE)

State Bank of Pakistan launched Islamic Financing Scheme for Renewable Energy (IFRE) to provide financing for power projects/ installation using renewable energy sources, e.g. solar, wind, hydro, biogas, bio-fuels, bagasse cogeneration, and geothermal as fuel. This scheme caters the financing needs for large renewable energy power projects as well as for small-scale renewable energy solutions.

Type of Customers	Sponsors intending to set up renewable energy projects
Mode of Financing	Murabaha / Diminishing Musharakah
Maximum Financing	Category I Rs. 6 billion for a single project Category II Rs. 400 million for a single customers Category III Rs. 2 billion for a single customer
Tenor	Category I Max. 12 years Category II Max. 10 years Category III Max. 10 years

*Terms and conditions are subject to change as per SBP’s policies from time to time.

Al Baraka Bank offers tailor-made Shariah compliant products and solutions to exporters and importers who require Islamic financing to cater for the diverse and unique needs of their businesses. We have a wide range of products and services that not only fulfil the demands of importers and exporters but through the International Network of Al Baraka Banking Group, various services and facilities are available as per the requirements.

Based on various Islamic modes of finance, the following is a complete range of products and services that are available for importers and exporters:

• • Letter of Guarantee (LG)
• • Export bills for collection
• • Export (Sight) bills purchase under Salam Arrangement
• • Export (Usance) bills purchase under Murabaha Arrangement
• • Letter of Credit (LC)

Facility against Export Bills (Currency Salam):

To meet the urgent financing needs of exporters, Al Baraka Bank (Pakistan) Limited offers a Shariah-compliant alternative to conventional export bill discounting. Instead of extending an interest-based loan against the export bill, the Bank may retain the export bill as security and provide fresh financing through a Murabaha arrangement, or purchase foreign currency from the customer on Salam basis at prevailing spot rates. This enables exporters to access immediate liquidity while ensuring compliance with Islamic principles and alignment with SBP's export finance framework.

Investment Banking addresses the increasingly diverse needs of our customers for advisory and structured finance solutions. The department is currently offering comprehensive and innovative financial solutions covering corporate finance advisory, capital market products and international banking services in various and diverse range of sectors including oil & gas exploration and distribution, cement, real estate, power generation, electrical and power appliances, industrial gases and medical solutions and pharmaceuticals.

The primary aim is to partner with our customers by suggesting practical, cost-effective and structured solutions so that they can make the most of the business opportunities that arise and maximize their financial returns.

Advisory:

The following range of advisory and structured finance solutions help our customers in pursuing their business strategies and operations:

• • Raising through Syndicated financing and Sukuk transactions
• • Corporate Re-organization
• • Infrastructure Development
• • Mergers & Acquisitions
• • Project Financing

Structuring:

• • Structured Finance
• • Securitization
• • IPOs

Specialized Roles:

• • Private Equity
• • Trusteeship
• • Access to Regional Financial Markets through Al Baraka`s Global Network that spreads across 15 Countries