The Use of Istisna as a Financing Method in Financial Institutions: A Research Study
استصناع کا مالیاتی اداروں میں بطور طریقہ تمویل استعمال :ایک تحقیقی مطالعہ
Keywords:
Islamic Sharia, Istisna, Muslim Economic, TradeAbstract
Islamic Sharia has allowed various forms of trade (buyu) to effectively manage economic transactions, and these forms of trade, under their respective conditions, are lawful within the framework of Sharia. One such form of trade is Istisna (a contract for manufacturing or construction). Its use in both individual and collective financial systems has become quite common in contemporary times. Under Istisna, several concessions have been granted that are not present in other types of trade. Therefore, financial institutions are utilizing these concessions to carry out many business activities under this form of contract. In this research paper, using classical sources, the concept of Istisna, its legitimacy, its permissibility and situations where it becomes invalid, and its application in the modern financial system are discussed in the light of Shariah evidence. The paper examines whether Istisna, with its specific conditions, is feasible in the context of the modern financial economy or not. The conclusion drawn from this discussion is that the concessions available under Istisna should be utilized by all financial institutions while staying within Shariah boundaries, so that the Muslim economic system can be based on sound principles.
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