When we talk about halal investment opportunities in Pakistan, we think that’s not possible. However, it is more than possible. You simply need to recognize the possibilities. Halal in finance means riba, or interest-free investments. As interest is not permissible in Islam, It looks like interest-free investment is not possible in this era. but it is true. So let’s get started.
#1. Invest in any Business
Investment in any Business is a very legal and good way to make passive income and build your wealth. in order to invest in business you need to analyze the business. it should be profitable. it should not have any debts. it should have growth potential. but in order to make is permissible in islam below are the conditions that must have met
- Business should be the items that are permissible in islam [No pork,No alcohol,No illegal drugs or any other haram item]
- Business should not have the interest based loan
- Business partnership should be established on islamic laws.
Musharaka is the term used for partnership in islamic law. It is an Islamic term that refers to a joint partnership in which two or more people unite their capital or labor to form a firm in which all partners share the profit according to a certain ratio, while the loss is shared according to the Pro-Rata basis. It is based on a mutual contract, hence it must contain the following criteria in order to be valid:
- The parties must be legally capable of entering into a contract (that is, they should be of legal age or legal entity).
- Parties should agree on contract without any duress
Every partner in Musharaka has the right to participate in management and to work for it (Gafoor 1996). However, the partners may agree to a condition under which one of them work as working partner and others are sleeping partner. In such a circumstance, the “sleeping” (silent) partner is only entitled to benefit to the degree of his investment, and the profit allocation ratio to him should not exceed the relative size of his investment in the business.
you can see all islamic business Principals here. otherwise you can learn the basics of islamic finance by Mufti Taqi umani himself on this video
#2 Start Your Own Business
Strating your won business is one of the best way to invest in halal opprtunities. you can start any business for this purpose you need to register your company in SECP. once it is registered you can do your business. However it is not specifically investment but if it works it can give you upto 100% returns. You can start trading as a starter and once you are fimiliar with market and suppliers, you can choose your niche for business. Actually you dont need a lot of money to start a business.
#3 Invest in Stock Market
Pakistan’s stock market is a very promising investment opportunity. However, it is very risky as well. in order to invest in Pakistan’s stock market. You need to open an account in the stock market. Here is how to open account in Pakistan Stock Market. Once your account is open, you can trade or invest in the Pakistan Stock Market. and for halal stock selection, choose securities from the KMIALL index. The KMIALL Index is a meezan bank index that includes all Shariah-compliant securities traded on the stock exchange. The KMI30 index is made up of the top 30 companies from the KMIALL index. A stock selection guide is also available here. and a stock entry guide based on Candlestick charts is also available.
#4 Meezan Bank Mutual Funds
Mutual Fund name imples the investment through banks, in other words, interest. but Now in Pakstan meezan bank is completely riba-free and providing amazing investment opportunities and totally riba-free. Meezan bank has more than ten investment options. below is fund performance for Nov-2022.
you can visit your nearest meezan bank branch and apply in any fund as per your liking. Application forms can be downloaded from their website
#5 Investment funds in other banks
If you dont like meezan fund or you dont have account for meezan bank and you dont want hustle, other banks also have the similar shariah compliant mutual funds. you can invest in them. a full article for Mutual fund is available at my website. all mutual funds specified in that article are shariah-complaint. you can select any of them. there is also series of Mutual funds details i am writing for you on this blog. i have written on AKD stock fund and ABL stock fund untill the writing of this article. All banks have shariah-compliant invetment opportunity. you just need to visit your bank branch to invest in them. below are some banks with their islamic funds
|Habib Bank Limited
|HBL Islamic Money Market Fund, HBL Islamic Income Fund, HBL Islamic Equity Fund, HBL Islamic Stock Fund, HBL Islamic Asset Allocation Fund
|National Bank of Pakistan – Aitmaad islamic banking
|Financing Products Scheme of NBP Aitemaad – Islamic Banking are as follows:
Aitemaad Ijarah, Aitemaad Murabaha, Aitemaad Diminishing Musharakah, Aitemaad Salam, Aitemaad Istisna, Aitemaad Tijarat
|Bank Alfalah islamic Banking Funds
|Bank Alfalah Investment Services
|MCB Islamic Income Fund, Pakistan International Element Islamic Asset Allocation Fund
|MCB Islamic Investments
|United Bank Limited – AlAmeen
|Al-Ameen Shariah Stock Fund, Al-Ameen Islamic Asset allocation Fund, Alameen Islamic Principal Preservation Plan
|UBL Al-Ameen Investment
#6 Invest in Property
Propert Investment is typical investment mindset in Pakistan. You Purcahse property at a fix rate and sell it after some time at bigger return. or you can rent it out for passive income. however below conditions for property must be met
- the subject rent must be halal, for example, you do not want to collect rental income from a casino.
- you do not charge interest, such as late payment costs.
- You must have some form of property ownership.
- But first and foremost, it is important to point out that the capital money used to invest must be halal. If the capital is haram, many scholars believe that any return produced from the investment will also be haram, even if it is invested in a halal manner.
You can also invest in Real Estate Investment Trust ( REIT). A real estate investment trust (REIT) is a firm that owns and manages real estate on behalf of its shareholders. It may include both commercial and residential premises. REITs allow investors to invest in a property portfolio without having to own the properties directly. Currently DCR (Domen city reit) is only reit available in Pakistan. which is also shariah compliant. you can invest in it via stock market of Pakistan.
#7 Invest in Islamic Naya Pakistan Certificates
Islamic Naya Pakistan Certificate (INPC) is a Shariah-compliant investment option available to accoun-holders of Meezan Roshan Digital and Meezan Roshan Resident Accounts. This certificate works on the basis of Mudharbah. and this is only available to Overseas Pakistanis only. INPC is only provided by meezan bank.
This project, led by the State Bank of Pakistan (SBP), provides investors with the opportunity to contribute to Pakistan’s economic growth and prosperity by providing profitable investment opportunities to both non-resident Pakistanis (NRPs) and resident Pakistanis (with declared assets abroad). The Islamic Naya Pakistan Certificate is solely held by the State Bank of Pakistan (SBP), with Meezan Bank serving as an agent.
Investments are available for three months, six months, twelve months, three years, and five years. Investment Certificates are offered in values of PKR, USD, GBP, and EUR. (Resident Pakistanis can only invest in certificates denominated in USD, GBP, or EUR.)
Certificates denominated in PKR require a minimum investment of 10,000 and multiples of 1,000. Certificates denominated in USD, GBP, and EUR: $1,000 minimum investment and 500 multiples thereof.
Working of Islamic Naya Pakistan Certificate
Investors will sign into a Mudarabah contract with the INPC Company Limited to invest their assets in Shariah-compliant INPCs. Mudarib’s investors include Rab-ul Maal and INPC Company Limited. The INPC Company Limited (Mudarib) will distribute profits to investors based on a predetermined percentage of the business’s distributable profit, known as PSR (Profit Sharing Ratio).
All investors will be assigned weightages based on the properties of the INPC that they own, such as tenure, profit payout options, and other relevant elements for profit calculation. Every month, the PSR and weightages applicable to all INPCs will be revealed. Both Shariah Advisory and Islamic Naya Pakistan Certificate have accepted the product structure, underlying agreements, and terms and conditions of the Islamic Naya Pakistan Certificate.
Conclusion-Halal Investment Opportunities in Pakistan
In conclusion there are many opportunities for halal investment in Pakistan. you cannot say there are not enough. below is the list
- Invest as business partner
- Start your own business
- Invest in Pakistan Stock Market
- Meezan bank Funds
- Banks Islamic banking Funds
- Invest in Property
- Islamic Naya Pakistan Certificates