Abstract
This research intended to explore issues in the existing
application of Salam and Istis.n¯a‘ by Islamic banks in Pakistan. For this
purpose, the respective model agreements devised by the State Bank of
Pakistan and by two Islamic banks for salam and istis.n¯a‘ were examined
on the basis of content analysis. Resultantly, some issues were identified
in the description of these modes, customer responsibilities, and goods
receiving by the banks under these modes. The expert opinion of Shar¯ı‘ah
scholars was explored through interviews to analyse those issues. The
content analysis of the interviews confirmed that leaving an unlimited time
to confirm the fitness of the goods to be delivered in salam and istis.n¯a‘,
could create gharar (uncertainty) in the transaction. However, accepting
the goods without examining is considered a practical issue. Shifting the
ownership related responsibilities of the goods to the customer (the seller)
by the bank after receiving the goods created a serious Shar¯ı‘ah issue in
the current practice of salam and istis.n¯a‘. Moreover, there appeared an
ethical problem on the part of the Islamic banks owing to following a
non-standardized approach in respect of these modes. These findings may
prove a step forward towards improving the prevailing application of salam
and istis.n¯a‘. Therefore, the study proposed an alternative process for the
application of trading modes in their true spirit through the Zarie Taraqqiati
Bank Bank Limited (ZTBL).
Burhan Ali Shah, , Ghulam Shabbir Khan Niazi , Ghulam Shabbir Khan Niazi. (2019) Salam and Istis. na¯‘: From Current Issues to an Ideal Model for Islamic Banks in Pakistan, Journal of Islamic Business and Management, Vol ume 9, Issue 1.
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