ABDUL RAFAY

n this study we designed to test the remarkable repayment performance of Akhuwat in Pakistan; the most successful Islamic Microfinance Institution (IMFI), which offers interest-free loans in order to improve the quality of life and alleviate poverty. The model of Akhuwat is based on Muakhaat (brotherhood) and Qard-e-Hasan (offering financial assistance to somebody in need without interest). The primary objective of this study was to investigate the determinants of microfinance repayment performance. The study examined the borrowers’ characteristics, loan attributes, lender/institutional characteristics and the social collateral characteristics related to the Akhuwat and the data of 387 borrowers is obtained from microfinance programs carried out on a continuous basis by Akhuwat. The findings depicted that among the socio-demographic factors like gender, marital status, number of dependents and numbers of previous loans are significantly and positively associated with loan repayment ...

Access to finance through financial institutions is highly dependent on financial literacy. The basic purpose of this paper is to examine the women’s financial literacy level in Pakistan especially, among the women entrepreneurs. This study also tries to determine the effect of financial literacy of women entrepreneurs on their access to finance and subsequent financial decision-making about their businesses. Current research conducted in this study used semi-structured questionnaires, selected interviews and focus groups. Findings show that women entrepreneurs lack proper knowledge of financial terminologies, mechanisms of financial access and government initiatives for women entrepreneurs. It is suggested in the light of these findings, that all the relevant stakeholders should work together to enhance financial literacy among current and prospective women entrepreneurs of Pakistan. Strengthening women entrepreneurship may play a significant role to alleviate poverty among female ...

With it being considered as avalue-added activity,theInternal Auditfunction (IAF)of a firm is one of the most important functionsin anorganization. During the last decade,the roleof this particular functionhas become very useful,especially in creating awareness regarding the Prevention, Detection and Assessment (PD&A) of fraudulent activities. In many countries, carrying out an Internal Audit isa legal compulsion for public companies, in orderto establish an effective,and efficient IAF.This study aims to explore the relationship between the various attributes of IAF(effectiveness, independence, staff training, qualification and experience),and the PD&A of fraudulent activitiesin Pakistan. For this purpose, the convenientsampling technique,for data collection,is used and the questionnaires are collected fromtherespondents belonging to Pakistan. The questionnaire has been prepared in the form of a Likert scale. Respondents for this study include (1) staff members working in the Intern...

This study examines earnings management through deferred taxes calculated under the IAS 12 and its impact on firm valuation. The literature finds that book–tax nonconformity leads to better earning quality and a greater association between earnings and future expected cash flows. Given that Pakistan is a pioneering implementer of the International Financial Reporting Standards, our hypothesis is that the components of deferred tax disclosed under the IAS 12 provide value-relevant information to equity investors. We divide deferred tax components into three categories: those arising from (i) operational activities, (ii) investing activities, and (iii) financing activities. These are subdivided to ensure that no value-relevant component is aggregated with a nonvalue-relevant component, which might otherwise lead to an information slack. Our sample includes data on shariah-compliant companies listed on the Karachi Meezan Index (KMI-30). We find that deferred tax line items in firms’ ba...

One fine evening of February 2018, while sitting on his rocking chair, the CEO of Bright Paint Industries (BPI) recalled the experience of exporting paints to Afghanistan and its financial returns. At the same time, he recalled the exhibitions of UAE in 2015 and 2016. Since 2016–2017, the top management was analyzing growing demands in local and foreign markets and very much concerned about implications of (1) rising competition from unorganized paint sector, (2) the customers’ trend towards using alternatives to paints like wallpapers, etc. and (3) ease of doing business in Pakistan due to persistent energy crises and other factors. Keeping in view the above-said issues and its existing presence in paint industry for the last four decades, the company is now considering two options: (1) expand its existing operations in Pakistan and cater the foreign markets by export from here or (2) set up a plant at some foreign location and fulfil orders from there.

Abstract Purpose Inquiring into the role of Islamic and conventional banks regarding the core responsibility of lending is an established phenomenon. This chapter is based on key findings regarding dynamic changes in the structural mix of credit portfolios in Islamic banks and conventional banks of Pakistan. Methodology/approach The nature of the study is exploratory; the sample consists of 5 Islamic banks and 20 conventional banks of Pakistan comparatively evaluated for the time frame of 2008–2014. Findings Our findings show that for Islamic banks, there is an increasing trend in the credit portfolios as a proportion to assets as well as to equity, whereas in case of conventional banks the findings are opposite. The results further prove a positive and negative growth of credit portfolios as proportional to assets and equity in case of Islamic and conventional banks respectively. It is also observed that credit portfolios of Islamic banks are growing with higher degree as a proportion to equity as compared to proportion to assets. On the other hand, conventional banks show higher degree of decline of credit portfolios as a proportion to equity as compared to assets. Originality/value These findings also show that primary stakeholders in Islamic banks are more risk seekers thus more inclined towards risky investments than ordinary credits.