You are on page 1of 15

CURRENT ACCOUNT:

• Non interest bearing checking account.

• Minimum account opening requirement of Rs. 10,000 only.

• Debit card can be used to withdraw cash and make purchases at thousands of outlets across Pakistan which provides
access to funds 24 hours a day.

• No restriction on number of withdrawals and on number of deposit

PLS SAVINGS ACCOUNT:

• Profit & Loss Sharing Saving Bank Account.

• Minimum account opening requirement of Rs. 5,000 only.

• No restriction on number of withdrawals and number of deposits.

• Profit on saving accounts is credited to the customer account on half-yearly basis.

• Debit card can be used to withdraw cash and make purchases at thousands of outlets across Pakistan which provides
access to funds 24 hours a day

ROYAL PROFIT:

• Minimum Deposit requirement of Rs. 50,000 only.

• Higher returns on higher balances.

• No restriction on number of withdrawals and on number of deposits.

• Debit card can be used to withdraw cash and make purchases at thousands of outlets across Pakistan which provides
access to funds 24 hours a day.

• Profit is credited to the customer account on monthly basis.

BASIC BANKING ACCOUNT:

• Initial deposit for account opening is Rs. 1,000 with no minimum balance requirement.

• Non interest bearing checking account.

• Maximum 2 deposits & 2 withdrawals through cheque is allowed.

• Debit card can be used to withdraw cash and make purchases at thousands of outlets across Pakistan which provides
access to funds 24 hours a day.

• No restriction on ATM withdrawal


• 1. Who can open this account?

Any Pakistani resident over the age of 18 can open this account. This account is for individual/joint customers only. Other
customers like companies, corporate etc are not eligible for opening of this account.
• 2. What is the minimum & maximum balance requirement to open this account?

Minimum balance requirement for opening this account is Rs. 10,000/- with a maximum of Rs.1, 000,000/-
• 3. How often can a customer withdraw funds?

Three debit transactions are allowed in a month either through cheques or Debit Card/POS machine.
• 4. How often can a customer deposit funds?
There is no restriction on deposit transactions.
• 5. Will customer be issued cheque book and Hilal (Debit) card?
The bank will issue the first cheque book of 25 leaves and a Debit card.
• 6. When will the profit be credited in the account?
Profit will be calculated on monthly minimum balance basis and will be credited in the account on quarterly basis. No
profit shall be payable for a particular month, if the minimum balance for any particular day of said month falls below the
amount of Rs. 10,000/-.
• 7. Is online facility available for this account?
Yes it is. (Subject to fulfillment of all related requirements)
• 8. Are their any service charges for this account?
All service charges are as per the prevailing ‘Schedule of Charges’
• 9. How many Kifayat accounts can be opened by one customer?
Only one account per customer will be allowed across all branches of Bank Alfalah.
• 10. When will account statement be generated?
Account statement will be generated on half yearly basis.

Alfalah Mahana Amdan

Alfalah Mahana Amdan is a 3 year TDR with expected rate of profit of 10% p.a. This term deposit will provide an opportunity to
individual/joint customers to enjoy higher returns that will automatically be credited to his/her current/PLS/RP/BBA account on 1st
working day of each month.

This facility is not available for business and corporate customers.

Some salient features

1. Minimum placement limit is Rs. 100,000/- and maximum placement limit is Rs.15,000,000/-

2. Expected Rate of profit is 10% Per annum (as per PLS governing rules)

3. Profit will be automatically credited on the 1st working day of each month into customers Current/PLS/RP/BBA account

4. Free Personal Accident Insurance coverage up to the deposit amount or Rs. 1,500,000/- whichever is lower.

5. Customer can avail financing facility up to 90% of the deposit(as per banks policy)

6. Any Pakistani resident over the age of 18 can open this account

7. Alfalah Mahana Amdan term deposit can be maintained only at any one BAL branch with a maximum cap of Rs. 15
Million. An undertaking shall be obtained from the customer certifying that he/she is not availing Alfalah Mahana Amdan
Term Deposit Receipt facility from any other BAL branch.(included in AOF)

8. Alfalah Mahana Amdan TDR will be issued for three years tenure with auto renewal facility of principal amount i.e. the
facility will be renewed automatically on maturity (i.e. 3 years)

9. Alfalah Mahana Amdan TDR will be subject to Zakat, Withholding Tax as well as any other applicable taxes

FAQs

1. Who can avail this facility?


Any Pakistani resident over the age of 18 years can avail this facility. This facility is offered only to individual/joint
customers. Other customers like companies, corporate etc are not eligible to avail this facility.
2. Is the customer required to have a checking account with BAL?
Yes. The Customer must be maintaining a Pak Rupees checking account with BAL and TDR facility shall be availed from
the same branch.

3. What is the minimum & maximum placement limit for availing this facility?
Minimum placement limit is Rs. 100,000 and maximum placement limit is Rs. 15,000,000.

4. What is the tenure of this TDR?


The Alfalah Mahana Amdan Term Deposit Receipt will be issued for three years tenure with auto renewal facility.

5. When will the profit be credited in the account?


Profit will be credited on 1st working day of each month to the customer’s account after deducting applicable WHT, etc.

6. What is the amount of benefit of Personal Accident Insurance Coverage?


The maximum amount covered is upto the deposit amount or Rs.1, 500,000 whichever is lower.

7. Is there any detailed medical examination required before the facility can be availed?
No medical examination/health declaration is required.

8. How long is the insurance valid?


The insurance policy will remain valid under the following conditions:

a. Till the time depositor maintains his/her funds under the product Alfalah Mahana Amdan Term Deposit.

b. Till the time age of the customer remains within the bracket of 18 years to 60 years.

9. How insurance benefit will be given in case of joint account?


In case of a joint account the amount of insurance cover will be proportionately divided (equally) among the joint account
holders.

10. What happens on the maturity of TDR?


The TDR will be auto renewed for the next term at the prevailing rate of profit. In case, the customer is willing to encash
the funds at the time of maturity, he/she will furnish the request at least 3 working days prior to its maturity date in
writing to the branch to encash his/her TDR and credit the principal amount to his/her account (as mentioned in
application form)

11. Is premature encashment allowed?


Yes, premature encashment is allowed. However, in such cases system will calculate profit amount at the prevailing rate
of normal TDR depending upon the nearest period bracket completed. For example, if premature encashment is made
after 1 year & 11 months, the 1 year prevailing profit rate of normal TDR will be applied on number of days funds remain
placed with the bank. Rate differential on already paid profit will be adjusted from the principal amount.

12. Is there any premium penalty on premature encashment?


In case of any premature encashment upon customer request, prevailing premium rate (i.e. Rs. 140/- per deposit of Rs.
100,000/-) shall be recovered from the customer for the current year and will be deducted from the principal amount.

13. How many Alfalah Mahana Amdan TDR facilities can be availed by one customer?
Customer can maintain Alfalah Mahana Amdan Term Deposit only at any one BAL branch, with a maximum cap of Rs. 15
million. An undertaking shall be obtained from the customer certifying that he/she is not availing Alfalah Mahana Amdan
TDR facility at any other branch.

14. What shall be the procedure if a customer is found maintaining more than one Alfalah Mahana Amdan TDR
facility at any other BAL Branch?
In case a customer is found maintaining placement at more than one branch than all subsequent Alfalah Mahana Amdan
Term Deposit Receipts availed at any other branch shall be treated as normal TDR and profit shall be paid as per
prevailing normal TDR rates. Rate differential on already paid profit will be adjusted from the principal amount.

15. What shall be the procedure if a customer is found maintaining placement of more than 15 million?
In case a customer is found maintaining placement for more than 15 million, all subsequent placements exceeding Rs. 15
million shall be treated as normal TDR and profit shall be paid as per prevailing normal TDR rates. Rate differential on
already paid profit will be adjusted from the principal amount

Alfalah Education

Alfalah Education is a Term Deposit product with No Additional Cost (NAC) education insurance cover for account holders with
school going children. Alfalah Education Account , beside offering competitive return on TERM DEPOSIT , offers tuition fee
reimbursement of children for 15 years of schooling or up to their 20th birthday, in the unfortunate event of the death (either
through accident, illness or natural causes) of the main breadwinner (account holder) parent.

Alfalah Education offers a competitive return on term deposit and secondly, it creates a contingency provision for our school going
youth’s education in the hapless event of the death of any major breadwinner. The product seems rewarding in the current scenario
of increasing number of children of school going age and the general public interest in quality education of their off springs.

Features

• Deposits can be placed in multiple of 100,000 units with maximum 3 units allowed per depositor, i.e. a maximum deposit
per customer of Rs. 300,000 across all BAL branches.
• All 3 units can be purchased for 1 child or each for up to 3 children.
• No evidence of insurability (medical examination/health decoration) is required.
• Maximum entry point age is 55 years (renewable up to 64th birthday)
• Benefit payment increases with age/class of the child.
• The product will be offered as a 1 year term deposit at upto 7 % profit to be paid at maturity
• Premium cost for each deposit unit of Rs. 100,000 would be Rs. 85 per month and borne by the bank.
• Regular Zakat and WHT would apply on the deposit.
• Monthly payments set forth will be paid directly to the mother/guardian, regardless of the actual school fee.
• In case of joint account holders, only main breadwinner account holder would be covered under the policy.
• Premium will be paid to ALICO by BAL on monthly basis.

Benefit Schedule

Benefit Payable: for 15 years or up to the child age 20


Monthly Premium: Rs. 85
Deposit: Rs. 100,000

Child Benefit Payable Monthly


Age* for no. of years Payment (Rs.)
5 15 2600
6 14 2800
7 13 3000
8 12 3200
9 11 3300
10 10 3600
11 9 3900
12 8 4300
13 7 4800
14 6 5400
15 5 6300
16 4 7600
17 3 10000
18 2 14600
19 1 28300

* Child age at the time of Breadwinner’s death.

FAQs

1. What is Alfalah Education Term Deposit?


Alfalah Education term deposit is issued as a one year TDR, renewable at maturity, caters to individuals/joint accounts
only, with a free of cost added benefit of education insurance coverage of depositor’s child (ren).
2. What is education insurance coverage?
Education Insurance coverage provides a contingency provision for depositor’s child’s tuition fee (upto the age of 20 year)
in the hapless event of the death of the main breadwinner.
3. Who can avail this facility?
Any Pakistani resident over the age of 18 years can avail this facility. This facility is offered only to individual/joint
customers. Other customers like companies, corporate etc are not eligible to avail this facility.
4. What is the maximum entry point age?
Maximum entry point age is 55 years (renewable up to 64th birthday).
5. Is the customer required to have an account with BAL?
Yes. The Customer must be maintaining a Pak Rupees checking account with BAL and TDR facility shall be availed from
the same branch.
6. What is the minimum & maximum placement limit for availing this facility?
Minimum placement limit is Rs. 100,000/- (1unit) and maximum placement limit is Rs. 300,000/- (3 units). Units can be
purchased for 1child or each unit upto 3 children.
7. What is the tenure of Alfalah Education TDR?
The Alfalah Education TDR will be issued for one year tenure with auto renewal facility.
8. Is there any detailed medical examination required before the facility can be availed?
No medical examination/health declaration is required.
9. How long is the insurance valid?
The insurance policy will remain valid under the following conditions:
a) Till the time, depositor maintains his/her funds under the product Alfalah Education Term Deposit.
b) Till the time, the age of the depositor (main breadwinner) does not exceed 65 years.
c) Till the time, the age of child (ren) remains within the age bracket of 5 year up to 20 year.
10. When will the profit be credited in the account?
Profit will be credited to the customer’s account on maturity (i.e. 1 year) after deducting applicable WHT, Zakat levy etc.
11. What happens on the maturity of TDR?
The TDR will be auto renewed for the next term at the prevailing rate of profit. In case, the customer is willing to encash
the TDR at the time of maturity, he/she will furnish the request at least 3 working days prior to its maturity date in
writing to the branch to encash his/her TDR and credit the principal amount to his/her account (as mentioned in
application form)
12. Is premature encashment allowed?
Yes, premature encashment is allowed at any time upon the request of the customer.
13. How profit will be calculated on premature encashment?
Profit will be calculated at the prevailing rates of Normal TDR as per the following schedule.

Tenure Completed Expected Rate of Profit


More than 1 month less than 3 months Prevailing rate of TDR for 1 month
More than and equal to 3 month but less than 6 months Prevailing rate of TDR for 3 month
More than and equal to 6 months but less than 1 year Prevailing rate of TDR for 6 month
14.
15. Is there any premium penalty on premature encashment?
Yes, In case of any premature encashment upon customer request, prevailing premium rate (i.e. Rs. 85/- per deposit of
Rs. 100,000/-) shall be recovered from the customer for the remaining months will be deducted from the principal
amount.
16. What shall be the procedure if a customer is found maintaining placement of more than Rs. 300,000/- in
Alfalah Education TDRs at same or any other BAL Branch?
In case, customer is found maintaining placement for more than Rs. 300,000 (3 units), all subsequent Alfalah Education
Term Deposit Receipt placed at same or any other BAL branch shall be treated as normal TDR and any rate differential on
already paid profit shall be recovered from customer along with insurance premium cost.

Application Process

To begin the process and further details please call 111-225-111 or visit your nearest Bank Alfalah Branch

ALFALAH KAMYAB KAROBAR:

Online Current Account

Bank Alfalah presents Alfalah Kamyab Karobar (KK) - a structured, branded, tier-based current account that caters to your banking
needs & aspirations. This product will provide you the opportunity to enjoy free services alongside state of the art banking facilities,
linked directly to the deposit balances in your KK account.
Alfalah KK Account can be opened with minimum deposit requirement of Rs 25,000, while the degree of free services will be
dependent on the minimum thresholds of respective tier.
Its will give you the power to choose from different tiers and avail banking facility from any of the Alfalah branches – PAN Pakistan.

KK Accounts have strategically been tailored into 3 different tiers, allowing you to choose the allotted free service to your benefit.
The three tiers are as following:

• Silver
• Gold
• Platinum

The unique tier based structure ensures that you can avail smooth & cost efficient facilities based on your current level of deposits
i.e. Higher the deposit, higher the number of free services.

Some of the Salient features include (tier-based):

• Free Online Transactions


• Free SMS Debit Alert (Subject to availability)
• Free PO/DD
• Free Accidental Cover( Valid for up to two People)
• Free cash deposit across Pakistan
• Gold VISA debit/ATM Card with every account

ALFALAH KAMYAB KAROBAR:

Online Current Account

Bank Alfalah presents Alfalah Kamyab Karobar (KK) - a structured, branded, tier-based current account that caters to your banking
needs & aspirations. This product will provide you the opportunity to enjoy free services alongside state of the art banking facilities,
linked directly to the deposit balances in your KK account.

Alfalah KK Account can be opened with minimum deposit requirement of Rs 25,000, while the degree of free services will be
dependent on the minimum thresholds of respective tier.
Its will give you the power to choose from different tiers and avail banking facility from any of the Alfalah branches – PAN Pakistan.

KK Accounts have strategically been tailored into 3 different tiers, allowing you to choose the allotted free service to your benefit.
The three tiers are as following:

• Silver
• Gold
• Platinum

The unique tier based structure ensures that you can avail smooth & cost efficient facilities based on your current level of deposits
i.e. Higher the deposit, higher the number of free services.

Some of the Salient features include (tier-based):

• Free Online Transactions


• Free SMS Debit Alert (Subject to availability)
• Free PO/DD
• Free Accidental Cover( Valid for up to two People)
• Free cash deposit across Pakistan
• Gold VISA debit/ATM Card with every account
Structured Finance Department comprises a team of hand picked professionals, dedicated to syndicated loans and structured
products. The team’s expertise is well known in the marketplace with its capability to assist public & private sector entities, major
financial institutions, multinational corporations, domestic & international institutional investors in innovative financing including
underwriting & private placements.

The scope of SFU’s activities also encompasses advisory assignments, such as privatization, Mergers & Acquisitions (M&As),
domestic listings, IPOs and restructuring.

During the past few years, SFU has been successful in sourcing and participating in a number of prestigious transactions involving
large amounts.

Some of the value added services offered by SFU include the following:

• Loan syndication

• Public floatation of Term Finance Certificates (TFCs) and equity

• Private placement of Term Finance Certificates (TFCs) and equity underwriting

• Guarantee syndications

• Financial restructuring

• Mergers & Acquisitions (M&As)

• Fostering joint ventures

• Privatization – Sale side and buyers side advisory

• Structuring new financial instruments

In future, SFU is envisaged to supplement the enhanced profile and profitability of Bank Alfalah Limited through its value added
services, through both asset building and income generating aspects

Inspired by a challenging spirit and an unyielding desire to create a sound and reliable network of correspondent relationships, the
bank has placed great emphasis towards it growth. Accomplishing something for the first time requires a special focus. It demands
foreseeing possibilities. In our endeavor to do so, we successfully surmounted problems and difficulties arising out of issues relating
to weak economic conditions of the economy and a continuous deteriorating status of country risk.
The incertitude and skepticism of the international banking community towards financial institutions from emerging markets
remained intact. Our persistence during the past four years allowed us to make significant inroads into the arena of correspondent
banking. Large international banks, after critically evaluating us, agreed to enter into relationship.
During 2002 we added 81 banks to our network of correspondents, bringing the total number over 170. Of these relationships,
there are now several banks that rank amongst, the top financial institutions in the world. Our geographical coverage now extends
to over 100 countries, which is adequately compatible with our trade flows.
Our correspondents, during the year extended us unqualified support, which enabled us to undertake a healthy quantum of foreign
trade business. There are many challenges ahead for the bank, in the coming year, our bank will not only continue to review its
efforts on existing correspondents to make the relationship more beneficial, but will also add more correspondents to establish a
comprehensive international networking to facilitate our customer’s transaction as well as the Bank’s proprietary needs.
We have provided against the list of correspondents their world and country ranking. These ranking have been taken from The
Bankers Almanac – July 2001 issue.
We would like to emphasize that correspondent arrangements do not necessarily imply the existence of account relationship. We
are in the process of rationalizing our current nostro account relationships. We shall continue to open new accounts in various
currencies based on our trade flows and business requirements.
The correspondents are listed on a country-wise basis. The banks are listed alphabetically.

Small and Medium Enterprise (SME) means an entity, ideally not a public limited company, which does not employ more than 250
persons (if it is manufacturing / service concern) and 50 persons (if it is trading concern) and also fulfills the following criteria of
either ‘a’ and ‘c’ or ‘b’ and ‘c’ as relevant:
(a) A trading / service concern with total assets at cost excluding land and building up to Rs 50 million.
(b) A manufacturing concern with total assets at cost excluding land and building up to Rs 100 million.
(c) Any concern (trading, service or manufacturing) with net sales not exceeding Rs 300 million as per latest financial statements.
An Individual, if he or she meets the above criteria, can also be categorized as an SME.
Realizing its corporate social responsibility and carrying forward the image of "The Caring Bank", Bank Alfalah started a separate
department at the Head Office level in early 2004. The SME Department was established with a mandate to foster SME finance at
BAL, explore opportunities for developing structured product programs for SMEs, introduce the concept of Dedicated SME officers
and finding market based solutions to fill the financing gap to this important and under-served business segment.
Bank Alfalah believes in innovation, simplification of procedures, and reduction in turnaround time and customer friendly service. To
accomplish this resolve, the SME Department's services are available at all Bank Alfalah conventional branches throughout Pakistan
to nurture valuable relationships in the SME sector.
ALFALAH KAROBAR FINANCE
Bank Alfalah’s first SME product Alfalah Karobar Finance is a running finance facility based on projected cash flows. Under AKF, we
offer working capital finance (Rs.0.5 million to Rs. 20 million) to SME’s at highly competitive rates. We have a team of professional
credit officers who provide expert financial advice along with customized packages to a diverse range of business clientele. The
product is available to SMEs through all Bank Alfalah conventional branches across the country.

Bank Alfalah took another step towards addressing the needs of the industry by introducing Alfalah Milkiat Finance. AMF is aimed at
strengthening the Small and Medium Enterprises viz a viz their business premises. Alfalah Milkiat Finance offers comprehensive and
flexible financing packages from Rs. 0.5M up to Rs. 30 million for the purchase, renovation and expansion of business premises.

Alfalah Quick Finance is a personal loan against National Saving Certificates, Prize Bonds, Alfalah GHP Principal Protected Fund &
PKR/FCY deposit for meeting personal, family and household needs.

In modern days leasing has now be come an economic and financial reality of primary importance. It is the originality of the leasing
techniques and its economical advantages, which has enabled it to enter the world of industrial investment in Pakistan and on the
international scene.
Lease finance provides a significant source of funds for companies to acquire or use assets. Leasing provides additional earning
opportunities to acquire assets and to get the inflows simultaneously out of the operations of the same assets. The ownership of the
asset is vested with the Bank (lessor) and in return for rental payments, the client (lessee) has full use of the asset. Being a
medium to long term mode of financing, it allows the lessee to use the funds for other profitable purposes which otherwise would
have been tied up in case of immediate payment for purchase of the asset.

The lease finance facilities are available for a variety of assets (imported/local) conforming but not limited to the following
categories:
1. Vehicles (Private & Commercial)

2. Plant, Machinery and equipment

3. CNG Equipment

4. Generators(Industrial & Commercial)

1. Sole Proprietors

2. Partnership Firms (Registered / Un-registered)

3. Private Limited Companies

4. Public Limited Companies (Listed / Unlisted)

5. Govt./ Semi – Govt. Organizations/ Autonomous Bodies

BAL works closely with its existing and prospective business partners to deliver most comprehensive and tailored leasing solutions
to meet all asset needs.
BAL offers the most competitive and flexible terms & conditions for lease concerning choice of assets, repayment, pricing, and tenor
which range between 3 to 5 years commensurating with the specific requirement of the lessee, useful life of the assets and client’s
ability to repay the lease rentals.

Bank Alfalah Limited acknowledging the vital role of a agriculture in the economic
development of Pakistan has designed Rural Finance Program named as "BANK ALFALAH
ZARIE SAHULAT". The product is designed to cater for multiple financing requirements of our
farming sector.

We are caring our customers through chain of complete, distinguished and specialized
products for agriculture sector. BAL Branches are designed to help the farmers with expert
advice, technical know-how and Credit for their multifarious activities through timely,
affordable and attainable modes tosuit farmer requirements.

BANK ALFALAH ZARIE SAHULAT is available for Short, Medium and Long terms.
Bank Alfalah Limited Strategy is to focus on following Objectives:

• Provide reliable infrastructure for Agri customers.

• Help farmers utilize funds efficiently and effectively.

• Provide farmers an integrated package of credit, supervision and technical know-


how.

Bank Alfalah Limited is committed to make dreams come true by making Pakistan's Rural
Economy healthier and stronger.

BANK ALFALAH'S ZARIE SAHULAT offers finance facilities covering entire spectrum of Farm
and Non-Farm activities both for production and development purpose. We offer following
wide range of Agri Finance Products to encourage farmers to increase farm production.

• Alfalah Paidawari Zarie Sahulat

• Alfalah Musalsal Zarie Sahulat

• Alfalah Tractor and Transport Zarie Sahulat

• Alfalah Machinery & Equipment Zarie Sahulat

• Alfalah Aabpaash Zarie Sahulat

• Alfalah Islah-e-Araazi Zarie Sahulat

• Alfalah Poultry Zarie Sahulat

• Alfalah Dairy & Livestock Zarie Sahulat

• Alfalah Fisheries Zarie Sahulat

• Alfalah Silos/ Storage Zarie Sahulat

• Alfalah Marketing Zarie Sahulat

• Alfalah Agri Industrial Zarie Sahulat

• Alfalah Bills /Guarantee Zarie Sahulat ( for growers corporate clients only).

• Alfalah Lease Zarie Sahulat


Q: Where to apply?

A: Apply in any of the Bank Alfalah Limited branch nearest to your


Agriculture Land / Project/Place of residence.

Q: How to apply?

A: Simply download agriculture loan application form available on


our Website or contact the Rural Finance Officer in nearest BAL
Branch who will provide necessary assistance.

Q: What should be the minimum land holding in order to


be eligible for Agri finance?

A: There is no minimum land holding criteria / limit to apply for


agricultural finance. The finance is extended only to genuine
farmers with proper collateral / surety acceptable to the Bank
extended for just able needs.

Q: What is maximum limit for the credit facility?

A: There is no fixed maximum limit for the credit facility. Rather,


it depends upon the genuiness of the applicant subject to
availability of suitable security acceptable to the Bank.

Q: Why should I choose Bank Alfalah to finance my Agricultural needs?

A: Very simple, we provide complete and comprehensive chain


of products. We cater all needs of farming community with
timely, affordable and viable financing package to fulfill
financing requirements of farmers with highly technically skilled
field force for betterment of their farming enterprise.

We facilitate all categories of farms individuals / corporate entities engaged in Agri


production, processing, packing, transportation, marketing, storage and export of Agri farm
commodities as per list of eligible items prescribed by State Bank of Pakistan.
The eligibility criteria observed while extending Agri finance to farmers under various products
of Bank Alfalah Zarie Sahulat is :

• The applicant is an individual /entity engaged in Agri activities identified in the


foregoing paragraph.

• The applicant is not a defaulter of the banking system.

• The applicant must be able to produce proper securities pass book acceptable to the
Bank.

• The applicant (individual / entity) shall be Pakistani / registered in Pakistan.

• The minimum and maximum age shall be 18 years and 65 years respectively (upper
age limit relaxation considered on case to case basis).

• Other criteria considered necessary on case to case basis.

The purpose of documentation is to bind the contracting parties to properly designed terms
and conditions to secure the interest of the Bank in ensuring that the return to Bank of the
money lent by it to farmers is fully safeguarded. Therefore, security and support documents
has to be completed in all respects.

The following documents are required by BAL for Agriculture financing.

• Copy of CNIC.

• Rural Finance Application form which is available at Bank Alfalah Branches /


Website.

• Pass Book issued by Revenue Authority.

• Copy of Khasra Gardawari (if applicable).

• Proof of leased in land (if any).

• Other documents as required according to nature of finance / security on case to


case basis.

Money Market

• Short term money market inter-bank trading.


• Active Treasury Bills trading in secondary market.

• Forward – forward inter-bank money market trading.

• Money market linked lending to and borrowing from corporate clients.

Foreign Exchange Market

• Active trading in ready and forward USD/PKR.

• Active quotations of foreign exchange rates in fifteen major currencies.

• Information in respect of prevailing rates of most of the currencies of the world for
corporate clients and individuals.

• Forward – Forward foreign exchange rates of USD/PKR.

• Active swap trading in USD/PKR and other major currencies such as EUR, GBP, JPY
and CHF.

Investment

• Active Investment in treasury bills (TBs).

• Active Trading in Pakistan Investment Bonds (PIBs).

• Active investment in Certificate of Investment (COIs)

• Active investment in Terms Finance Certificates (TFCs)

Government Securities

• Efficient service for individuals and corporate clients for buying and selling govt
securities on their appropriate requests.

Custodianship

• Investment Securities Portfolio Accounts of Customers for holding on their behalf


Treasury Bills, Pakistan Investment Bonds.

Financial Advisory Services

• Briefing on current information available in market in respect of prevailing rates of


USD/PKR.

• Briefing on current information available in market in respect of foreign exchange


rates of major foreign currencies.

• Future expectations and sentiments on major foreign currencies including


Pak.Rupees.
The thrust for Islamic Banking is founded on the desire to submit to the Divine Instructions on
all transactions, particularly those involving exchange of money for money. However, it would
be quite unfair to limit Islamic Banking to elimination of Riba only.

Riba is but one of the major undesirable elements of an economic transaction, the others
beingGharar (uncertainty) and Qimar (speculation). While elimination of these objectionable
aspects in a transaction is indeed a critical aim of Islamic banking system, it is by no means
its ultimate objective.

At the heart of Islamic Banking is a system of commercial transactions that not only
providesHalal modes of commercial transactions by avoiding that which is obnoxious and
objectionable, but also fosters ethical, fair and just practices.

A key element of Islamic economics is distribution of equitable rewards to the different factors
of production. Islamic economic system seeks system of Redistributive justice where
concentration of wealth in a few hands is countered and flow of money into economy is fluent.
Islamic Banking is, therefore, seen as a lynchpin to achieving the economic and social goals of
the Islamic economic system.

Riba

It has been argued in vain for long in some circles that the prohibition in Islam is that of
excessive interest only. Or that it is the interest on consumptive loans that has been
forbidden and as such loans extended for commercial purposes are entitled to an excess over
the principal amount lent. Such tendentious arguing fails to give due understanding to verses
278 and 279 of Surah Al-Baqarah (quoted below).

“O ye who believe! Be afraid of Allah and give up what remains (due to you) from
Riba (usury) (from now onwards) if you are (really) believers! 2:278

And if you do not do it, take notice of war from Allah and His Messenger! But if you
repent, you shall have your capital sums 2:279

However, this does not mean that Islam prohibits any gain on principal sums. In Islam, profit
is the recognised reward for capital. When capital employed in permissible business yields
profit that “excess over capital” becomes the rightful and just claim of the owner of the
capital. As a corollary, the risk of loss also rests exclusively with the capital and no other
factor of production is expected to incur it.

Another important element of Islamic finance is that profit or reward can only be claimed in
the instance where either risk of loss has been assumed or effort has been expended. Profit is
therefore received by the provider of capital and wages/remuneration by labour/manager.

A depositor in an Islamic bank can therefore make earnings on his or her deposit in several
ways. Through return on his capital when that capital is employed in a business venture;
through sharing of profit when his capital is part of the capital that is employed in a
partnership, and finally through rental earnings on an asset that has been partially financed
by his capital.

Islamic financing: Asset-based financing

A key feature of Islamic banking is that unlike conventional banks which deal primarily in
money and financial securities, Islamic financing is related to an asset that is a feature of the
transaction, and quite often the principal feature itself. From this springs an important
distinguishing feature of Islam wherein Islamic financing is always based on illiquid assets
that have intrinsic value. Profit to Islamic financing is generated through bonafide sale of
these assets.

Conventional banking, on the other hand, is free of such limitations. It lends money and
makes its earnings through this act of lending. Its earnings are unconcerned with the
economic fate of its lending.

A Perspective:

The history of Islamic banking from its recorded inception is less than 40 years old. From a
humble beginning in a small village in Egypt in the late 60’s, it has spread to the four corners
of the world. By normal standards in a time span that is less than half a century it could have
hardly been expected to establish foothold in Muslim world, let alone make its presence felt in
Muslim-minority countries. Yet such has been its phenomenal rate of growth that not only is it
taking firm roots in its homestead, but is also attracting genuine interest among the standard
bearers of conventional banking and in swathes of land where Muslims are a small minority
only.

Still there is much ground left to cover. In Pakistan, Islamic Banking is less than 3% of the
Banking sector. Even in the Gulf states, where it has a larger footprint, in no single country is
the volume of Islamic banking more than a third of the entire sector.

Many blame Islamic Banking’s small share against conventional banking to a smaller portfolio
of products. A standard complaint against Islamic banks is that they do not have the same
variety of financial instruments as found in conventional banking. Though valid to an extent,
this popular jeremiad needs to be seen in the perspective of Islamic Banking’s brief history
against more than two centuries of conventional banking adopted in full force across the
globe, its competition against an entrenched system of banking and the constraints within
which it must operate.

Notwithstanding, Islamic banking is still growing at more than twice the growth rate of
conventional banking worldwide, and while it may not have the latter’s plethora of financial
products, its repertoire of Islamic financial products is steadily increasing.

In the following space, principal Islamic instruments are briefly described to acquaint the
reader with their fundamental aspects. Following that, Islamic Products in BAL-IBD’s portfolio
are illustrated in terms of their features.