In Pakistan, importers and exporters of raw materials rely on a technique that is known as _____ to avoid the ban on interest.

Question

Quizplus · Accepted Answer

Murabaha is a common Islamic financing structure where the seller discloses the cost and profit margin to the buyer. It's used as an alternative to interest-based transactions, aligning with Islamic law which prohibits interest (riba). This makes it a popular choice among importers and exporters in Islamic countries like Pakistan to conduct business while adhering to religious principles.

In Pakistan, Importers and Exporters of Raw Materials Rely on a Technique