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Course Outline Page 1

University of Management and Technology

Course Outline
Course Code: IB – 605
Course Title: Application of Quranic and Sira Concepts in Banking and Finance

Program

MS Islamic Banking and Finance (MS – IBF)

Credit Hours

03

Duration

15 weeks (15 sessions)

Prerequisites

N/A

Resource Person

Prof. Muhammad Azmat

Counseling Timing

(Room# 1N - 10)

Up to 30 minutes after every class

Contact

muhammad.azeem2050@hotmail.com
Mobile # 0333-4184997

Chairman/Director signature………………………………….
Dean’s signature…………………………… Date………………………………………….
Course Outline Page 2

Learning Objective:
Application of Quranic concepts in banking and finance are the foundational study of the
Quran as a source for Islamic banking and finance. The concept of Sira have been both
to help develop Muslim Law and to facilitate the interpretation of the Quran. Sunna, the
examples, the deeds, saying and unspoken approval of Muhammad (P.B.U.H.), is
defined as a Sira and the Hadiths together. Sira may be translated with "way of acting".
Sira represents the basis for the Hadith, but without validating the stories recorded, by a
chain of transmitters, Isnad, as is the case with the Hadiths. The reason why Sira would
come without this sort of validation may be explained that they didn't serve as important
a role as the Hadiths, which were used in the development of Muslim Law. In this
course we will examine different approaches taken to the study of the foundational
sources, that is, the Qur'an and the biography of the Prophet (Sira), as a way of tracking
the on-going scholarly debate surrounding the early development of Islamic banking
and finance.

Learning Methodology:
Assessment Methods:
Assessment would be made on the basis of tests, quizzes, midterm and an
assignments/research paper.
Group Assignment, discussing various aspects of scope and development of Islamic
Banking in different countries.
Reading Materials:
Various articles, to be distributed, during class.







Course Outline Page 3

Grade Evaluation Criteria
Following is the criteria for the distribution of marks to evaluate final grade in
a semester.

Marks Evaluation Marks in percentage

Quizzes 15
Assignments 15
Mid Term 00

Attendance & Class Participation 10
Term Project 20
Presentations 10
Final Exam 30
Total 100



Recommended Text Books:



Reference Books:



Course Outline Page 4

Calendar of Course contents to be covered during semester
Course Code: IB - 605
Course Title: Application of Quranic and Sira Concepts in Banking and Finance
Week Course Contents

Reference Chapter(s)
1 BASIC CONCEPTS
A-SPECIAL TERMINOLOGY OF THE QUR ‘AN
1. Fadl
2. Fasad(Corruption)
3. Ihsan
4. Infaq
5. Khayr
6. Mata
7. Mustad’afeen (The weak)
8. Rizq
9. Zulm(injustice, wrong-doing)
B-Philosophical Concepts
1. Ownership
2. Creation and Distribution
3. The Lawful and the Unlawful (Halal and Haram)
4. Man versus the universe
5. Reward and punishment

2 C-HUMAN INSTINCTS
1. Man’s Love for wealth
2. Love for Quick Return
3. Proneness to save
4. Inclination to Maintain Solvency
5. :Ungratefulness
6. Pride in wealth
7. Grudge /Envy
8. Desire to insure for old Age
9. Desire to insure for posterity
10. Fear of Depletion of Resources

3 D-PREREQUISITIES OF ECONOMIC SUCCESS
1. Hard work
2. Peace and Security
3. Efficient utilization of Resources
4. Collective will
No misuse of time

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4 E-Economic Motivation
1. The Economic element
2. The Religious element
F-ETHICS,ETIQUETTES And NORMS
1. Objective of Economic Activities
2. The Moral values
 Recommended and Disapproved
 Etiquettes and Norms

5 SOCIAL BEHAVIOUR
A-SOCIAL OBLIGATIONS
1. Observance of Trust
2. Enforcement of justice
3. Dealing with injustice
4. Enjoining Right Conduct, forbidding wrong
5. Discharge of Social Responsibilities
6. Concealment of Wealth Condemned
7. Commitments Damaging to others’ interest .Disallowed
8. Contribution to the causes of Faith and Society
9. Assurance of Salutary Environment
B- AGREEMENTS AND CONTRACTS
1. Agreements
2. Contracts

6 C- TRUSTS AND TRUSTEESHIPS
1. Contractual Trusteeship
2. Implied Trusteeship
3. Emphasis on Honoring Trust
D-RIGHTS AND RESPONSIBILITIES
1. Rights
2. Duties/Responsibilities

7 ECONOMIC PARAMETERS
A-OWNERSHIP
1. Collective Ownership
2. Private ownership
3. Ownership
4. Sources of ownership
5. No limit on ownership
6. No Discrimination in the Right of Ownership
7. Ownership, Possession and Right to use
B-SOURCES OF EARNING
1. Lawful
2. Unlawful
3. Wisdom in prohibiting Some Unlawful Activities

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8 C—WEALTH AND RESOURCEFULNESS
1. Wealth
2. Resourcefulness
D-PRODUCTIVE ACTIVITIES
1. Agriculture
2. Trade
3. Fishing
4. Manufacturing
5. Craftsmanship
6. Weapon manufacturing
7. ship Building
8. Construction
9. Factors of production
10. Loss of production means loss of inputs

9 E-Labor And Enterprise
1. Arduous World And Drudgeries Life
2. Livelihood Demands Enterprise
3. Dignity Of Labor
4. Natural Law Of Economic Return
5. Leisure And Rest Are Necessary
6. Mant Should Not Be Oversensitive To Fluctuating
Fortunes
7. Fair Wage Without Pressure
8. Wage Bargaining Allowed
9. Labor Saving Devices
10. Process Of Change Demands Collective Will Power

10 F-Public Finance
1. Objective Of Fiscal Policy
2. Heads Of Income
3. The Role Of The Media
4. The Ethics Of Collection
5. Heads Of Public Expenditure
6. No Discrimination On The Basis Of Faith or Deeds
7. The Unwanted Reaction of Non-Beneficiaries
8. Expenditure Policy to be Decided by Consultation
9. Redistribution is No Substitute for National Cohesion

11 G-TRADE (CASH AND CREDIT)
1. Its Approval in the Quran
2. Business Ethics
3. Ban on Misleading Publicity
4. Joint Venture
5. Rules of Credit Transaction
H-LOANS AND INTEREST/PUBLIC DEBT
1. Lending-A Moral Phenomenon
2. Terms and Conditions of a Credit Transaction
3. The Context of Prohibition of Interest
4. Prohibition of Interest for the Scriptures
5. Stages of Prohibition
6. Debtor-Creditor Relationship

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7. Normal Social Relations vis-à-vis Interest
8. Impact of Interest on the Economy
9. Public Debt-An Analogy
12 PUBLIC POLICY GUIDELINES
A-POLICY MAKING PROCESS AND THE MANAGEMENT OF THE
ECONOMY
1. Decision making and Implementation
2. Anticipation of Demand and Ensuring Supply
3. Long Term Planning
4. Creation of Buffer Stock
5. Bargaining
6. Misuse of Public Property/National Wealth
7. Ethics of Public Dealing
8. Impact of Overburdening of the People
9. Onus of Liability
10. Qualifications of Officials
11. Disqualification of Officials
12. Normal Working Time
13. Convenience of the General Public
14. Relaxation in an Abnormal Situation
15. Errors and Omissions
16. Role of Custom and usage
17. Curtailment of Economic Freedom

13 B- MACRO ECONOMIC PHENOMENAN
1. Consumption
2. The impact of Spending
3. Causes of Cyclic Fluctuations
4. Causes of Divine
5. Policy of Unequal Distribution
6. The Factors of Change
C-OFFENCES
1. Zulm (Injustice)
2. Unlawful Earnings
3. Destruction of Crops, Livestock and Human Capital
4. Influencing Legal Process
5. Jeopardizing Support Programmes
D-ECONOMIC SECURITY
1. The Factors of Uncertainty
2. Mans Desire for Safe and Secure Economic Future
3. Secure Trade is Allah’s Blessing
4. Precautions in Mutual Dealings
5. Physical Safety

14 & 15 Presentations