Murābaḥah to the Purchase Orderer A Comparative Jurisprudential Study with Pakistani Law

المرابحۃ للآمر بالشراء دراسۃ فقھیۃ مقارنۃ بالقانون الباکستانی

Abstract

This research delves into the concept of Murābaḥa for the Purchase Orderer in Islamic finance, offering a comparative analysis with the legal framework in Pakistan. The study begins by defining Murābaḥa both linguistically and terminologically, providing a comprehensive understanding of its key components. It distinguishes between traditional Murābaḥa contracts and the modern practices within Islamic banking, illustrating the evolution of this financial tool. The research further explores the jurisprudential adaptation of Murābaḥa specifically for the Purchase Orderer, emphasizing the Sharīʿa principles that guide these transactions. Special attention is given to the obligations and conditions imposed on Islamic banks to ensure that the practice aligns with these principles, thus maintaining ethical financial transactions.

Additionally, the study examines the regulatory framework established by Pakistan’s central bank and compares it with the standards set forth by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). The analysis reveals a significant alignment between the two frameworks, particularly in regard to ownership, possession, and risk-bearing requirements prior to selling goods under a Murābaḥa contract. The research concludes by identifying areas of convergence and divergence, providing valuable recommendations for enhancing Sharīʿa compliance in Pakistan’s Islamic banking system. This study not only contributes to the academic understanding of Murābaḥa but also serves as a guide for improving the legal and regulatory practices in Islamic finance.