استصناع ذریعہ تمویل اور عملی تطبیق

Istisna, As a Mode of Finance, And its practical application

Abstract

The concept of this paper provides both the sharia and operational requirements
for "Istisna" contract. Istisna is a type of sale contract where a subject matter is
transacted before it comes into existence. Hence the selling
price and the specification of the subject matter must be determined and agreed by
contracting parties upon entering into istisna contract.
In the context of Islamic financial transactions, an IFI may inter into istisna
contract with a customer who requires an asset that needs to be constructed or
manufactured based on a given specification. As a seller, the IFI undertake to
construct or manufacture the asset and deliver the completed asset to the
customer on the agreed delivery date .The customer (purchase) may pay the
selling price on deferred basis, either in lump sum or instalments basis.
Typically, the IFI is expected to enter into an arrangement with a competent and
reputable contractor to undertake the construction or manufacturing work.
Shariah emphasizes that the obligation to deliver the completed listing asset must
remain with the seller, regardless of whether the seller directly undertakes the listing
work or hiring another party to complete the work.