An Introduction to Islamic Modes of Financing for Elimination of Interest Based Transactions in Banking Sector of Pakistan

The Economic system ofIslam is very balanced one. Islam does not deprive a person to take benefit of all halal (permissible) things, while it has banned all illegal means of earning like deceit, corruption, gambling, etc. Among all evils, interest/usury is the worst form of earning and those who are involved in transactions based on it, they have been threatened with hell. While on the other hand, in most banks and other financial institutions, transactions are carried out on the basis ofinterest. This is why Muslim scholars worked out alternative modes based on Islamic financing to replace interest-based transactions. In this article six modes of financing i. e. Musharakah. , Mudharabah, Murabahah, Ijarah, Salam and Istisnah have been discussed. If these Islamic inodes of financing are adopted in banking sector and in otherfinancial institutions, then it is hoped that in a very short span of time elimination ofriba would be possible.

Comparative Study of Higher Education Systems in the Punjab and Khyber Pakhtunkhwa

Higher education is the core of the economic development of the country. It helps the economy by providing competent and skilled youth who ultimately enhance the level of the economy. Hence, it is obligatory that the higher education needs to be meaningful and purposeful. In this regards the study was “Comparative Study of Higher Education Systems of the Punjab and Khyber Pakhtunkhwa”. The topic was selected in view of the significance of higher education and the difference in its various aspects like academic, provision of physical facilities, examination, research etc. The objectives of the study were (i) to review the management systems of universities of both the provinces (Punjab, KP), (ii) to identify the physical and academic facilities provided to students and teachers by the systems, (iii) to compare the similarities and difference in the higher education systems of both the provinces and (iv) to suggest measures for improvement. The hypotheses were formulated on the basis of assumptions that a significant difference existed in the higher education systems of both the provinces like physical and academics facilities in the said systems of the provinces. The population of the study comprised 1638 students, 152 teachers and 142 administrators of the main campuses of the universities in the Punjab i.e. University of Punjab (Lahore), Bahaudin Zakriya University (Multan) and University of Sargodha in (Sargodha) and from the main campuses of the universities of the Punjab. Similarly, 1110 students, 117 teachers and 118 administrators from the three universities i.e. University of Peshawar (Peshawar), Abdul Wali Khan University (Mardan) and Gomal University (Dera Ismail Khan) in the Khyber Pakhtunkhwa constituted the population. The sample size comprised 313 students, 113 teachers and 108 administrators from the Punjab provinces and 285 students, 92 teachers and 92 administrators from the Khyber Pakhtunkhwa province. Three questionnaires were administered for the students, teachers and the administrators of the said universities. The questionnaires were developed on five-point rating scale for responses. The questionnaire for students contained 36 closed ended and one open ended response whereas the questionnaire for teachers and administrators were comprised of 54 closed ended and one open ended, 26 closed ended and one open ended respectively. The main findings of the questionnaire of students were that majority of students from Punjab province agreed that the study material was at par with at international standards, whereas; students from Khyber Pakhtunkhwa disagreed. Similarly, huge majority of the students in both the provinces disagreed that their study material was revised after every three years. The findings from the questionnaire of teachers were that huge majority of teachers in Punjab agreed that their appointment, promotion were made through proper procedure whereas, a simple majority of teachers in Khyber Pakhtunkhwa had parallel views. The findings from the questionnaire of administrators were administrative decisions made by the administrators in the universities of both the provinces created problems for the teaching staff. The conclusions from the questionnaire of students were that students from both the provinces believed that admission was not based on merit despite the conduct of admission tests. The conclusions from the questionnaire of teachers were that teachers from both the provinces disagreed that study material was reviewed periodically and they were given scholarships on merit. The conclusions from the questionnaire of administrators were that administrators from both the provinces agreed that administrative decision were sometime problematic for the universities. Vast majority of administrators in both the province agreed that the university had its fund generating schemes. It was recommended that study material may be reviewed and revised as per Higher Education Commission policy and universities may encourage research culture and may give scholarship to teachers on merit.