The Study of Possible Shariah Non Compliance Risks of Ijarah Along With Their Risk Management Mechanism

The main objective of this research paper is the study of possible Sharīʻaĥ non-compliance risks (SNCRs) of Ijāraĥ along with their risk management mechanism. As the activity of Sharīʻaĥ non-compliance is negligence or failure to comply with the Sharīʻaĥ rules and regulations as well as for some extent, the breach of the law of the land. Hence, Identification, Monitoring, Control and Mitigation of SNCRs need to be undertaken sensitively otherwise the spirit and objective of Islamic banks (IBIs) will be no more than different from Conventional banking system i.e. Interest based banking. Consequently, this new practice of Islamic banking will also be considered Sharīʻaĥ non-compliant. Because, failure in control and mitigation of Sharīʻaĥ non-compliance risks (SNCRs) may render the transaction into Null and Void (Bāṭil) or Voidable (Fāsid) as well as the return/rental would be considered impermissible (Ḥarām). Additionally, it may expose the status of IBIs at high risk regarding their reputation, profitability and confidence of their stakeholders which may lead the system towards collapse and downfall. Keeping in mind the need of the identification of SNCR along with estimated risk management/mitigation tools, this paper is developed to help the industry to develop their own Sharīʻaĥ non-compliance risk management system and to achieve the targeted outcomes i.e. Sound reputation of Islamic banking on the basis of Sharīʻaĥ principles, permissible proceeds/profits through genuine Sharīʻaĥ compliant activities and comprehensive knowledgeable material to understand distinctive and accurate Islamic banking system from Conventional. Targeting the abovementioned goals and aims, the answers of following questions are explored: What is SNCR? Is there any approved and authentic mechanism or SNCR management system in market to manage and mitigate them? Is the SNCR destructive for the profit and goodwill of IBIs? Principally, this research paper is an effort to uncover the SNCRs of Ijāraĥ Product along with the risk management mechanism keeping in sight the modern practices of Ijāraĥ Product.

An Analysis of Paradigm Shift from Public Extension to Public Private Partnership Extension System in Nwfp, Pakistan

A general weakness of agricultural extension is the low adoption of new agricultural technologies by poor and small farmers. As the present public extension systems in many countries have not been able to address the issues and concerns of small and poor farmers, a search for new extension models that are more effective, efficient, and responsive to different categories of farmers is essential. This essential model might be the public-private partnership. Govt. of NWFP has initiated a new public private partnership extension program in the province during the year 2000. This emerging system is locally called as Farm Services Centers (FSCs) where inputs delivery, market facilitation, exchange of experiences and knowledge are the main activities of the system. However, there is still information gap about whether this public-private partnership will be beneficial in developing and extending agricultural technologies. This study intends to fill up that information gap by analyzing this public-private partnership by measuring its strengths, weaknesses, opportunities and threats. For this purpose, out of 24 districts, two districts Swabi and Lakki Marwat were selected randomly as study area from where 217 and 274 farmer respondents were selected at random with the help of table given by Fitzggibbon et al. (1987), making a total of 491 respondents. All the Agricultural officers and district officers of the selected districts were also selected as respondents of the study. Quantitative data were colleted by survey method, while qualitative data by focus group discussion with the help of open-ended interview schedule. The results showed that the most important strength of FSC in the eyes of farmer respondents was ―managed by farmers‘ bodies‖ as ranked 1st with mean 4.05 and SD 1.29. The weaknesses of both extension systems as diagnosed by the farmer respondents were ―no sale arrangements for surplus produce‖. In case of opportunities, FSC was bottom up approach and ―based on partnership between farmers and the government‖ ranked 1st with mean 4.12 and SD 1.29. The threats for FSC as reported by farmers respondents were ―no trend to develop farmers‘ organizations among farming community‖, ―pressure exerted by political influential authorities‖ and ―low preference of agriculture by youth as full time occupation‖. According to EFS respondents the most important strength for FSC was ―managed by farmers‘ bodies‖ which ranked 1st with means 4.82 and SD 0.40. The major weaknesses of FSC as diagnosed by EFS respondents were ―no female staff‖, ―no sale arrangements for surplus produce‖, and ―lack of marketing facilities‖ ranked 1st, 2nd, and 3rd .The statements ―offers low cost of learning‖, ―based on partnership between farmers and the government‖, ―provides forum for farmers to get together‖, ―proved extension workers to be good change agents‖, and ―encourages farmers participation‖ were the top five opportunities of the system. Out of all threats, EFS ranked the statement ―no trend to develop farmers‘ organizations among farming community‖ as 1st threat with mean 3.82 and SD 1.40. On the basis of conclusions it was recommended that Government should provide the opportunities of availing projects of different funding agencies to increase the share of private sector on FSC basis. Government should formulate law to increase the participation of women in the present programs, as they are main component of agriculture. Department should provide more facilities like pay and other allowances to the staff indulged in FSC to increase their working efficiency. As recommended by respondents separate meeting places should be provided for female farmers, so as they effectively get trainings and efficiently utilized the acquired knowledge in relevant fields.