Tuesday, 14 May 2013

Everyone Asks Where did Tsunami Go?

I am Surprised if any one cannot see Tusnami even by now
Tusnami is everywhere, at all places ………..
 The rigging and echoes of unfair elections have amplified the impact of tsunami all over the country

Pakistan is a dynamic country; every region and province having a different kind of dynamics, at some places feudals rule at other places the fear factor and in some regions it is the kinship and biradari system that works…..
Pakistan Tehreek e Insaaf (PTI) emerged as a party with a National Agenda without any regional slogan. Tusnami party rejected politics of inheritance; superficial economic growth, flawed, inadequate and a confused foreign policy. Not undermining the premise that worsening economic environment and poor law and order situation also helped the party to gain its popularity all across the country. This is the first time that the country saw a party with the intermediate stance between left and right wing; The left wing of this country should not forget that majority of this country are practicising Muslims and desire to have policies reflective of their sentiments ; that’s the new reality of this country they should accept instead of referring to decade of 60’s and 70’s again and again, on the other hand the extreme right wing should acknowledge that this country is a country of Muslims not where religion can be used only to fool people. The Country has Awaken now…….
The awakened nation has shown their presence in every province/region in accordance to its own cultural dynamics. In KPK; following its tradition rejected the poor performance /governance and gave a clear mandate for the change to a new party , PTI. In Karachi (Sindh), apparently MQM won seats but here the change has shown itself in its own manner ; unexpectedly MQM was given a tough time by PTI and despite all rigging and unfairness even in MQM dominated constituencies, PTI candidate got considerable number of votes, averaging 30 thousand. Coming to Punjab, PPP was fully washed out and Tusnami emerged as a second big  power (here the rigging was quite well planned with the help of establishment and our own dear army) and in Baluchistan, the situation is still not clear.
BUT the true reflection of this Tusnami was in peaceful sit-ins in Karachi and Lahore on the very next day of elections. While talking to my brother on Election evening (who is a diehard supporter of PTI) he discussed that PTI is in bad situation for the fact that there had been rigging and also the fact that the party Chairman was in hospital, so may be nothing could be done. And the very next day people were amazed with the way  PTI Tusnami  was on roads in different cities protesting against unfair elections . Karachi for sure I know that this protest of the very second day was not demanded by the party rather the supporters themselves gathered and protested against the corrupt system
Hats off to them….
Hats Off to their courage to resist the wrong …….
Hats off to PTI for involving youth in the democratic process ……..
PTI/Imran's Tusnami does not need to be in lower and upper houses…….
PTI Wanted To Empower The Youth With Democratic Awareness.......
 That’s The Change Imran Wanted To Bring And That’s What Everybody Can See Now.......
Three cheers for PTI & Three Cheers for Imran Khan 

Friday, 3 February 2012

Islamic Banking - Mindset

A while back I was invited to a dinner party at one of my friend’s place in Karachi. That was one of my cheerful days as my whole gang, my buddies were there at that lunch-cum-dinner party. Whenever we all are together , “one” has to be the centre of attention but mind it being such centre of attention  means quite a game of nerves and patience because all of us just pull leg of that centre of attention one way or other . I was that lucky centre of attention that day because of my very recent inclination and interest on Islamic banking.

All my friends present at dining table were one way or other linked with financial sector and I’m quite proud of their competencies, professional excellence and rationality. Though I knew that all of them were not convinced with Islamic banking, however their discussion /criticism that day was surprising and an eye opener for me. Questions like Islamic Banking is just a new way of these Mulanas to mix religion with everything to have their mass popularity, that Islamic Banking is a new way of exploitation by Mulas and that  Islamic Banking doesn’t even fulfill the definition of banking. I realized that if people educated, exposed and reasonably faith sensitive (most of them) were criticizing IB then how masses would perceive this new banking system?

I tried to clarify queries of my friends with my limited knowledge that like other economic and financial system, Islamic Economics/banking is a system that has got its unique characteristic and can be considerably different from all other prevailing systems. So even definition of banking can vary among different economic systems. I agreed then and still admit now that there are many problems and issues in practical implementation of this new financial system, but one would easily agree and accept the practicality, soundness and stability of the system if one thinks rationally and logically.

I sometimes fail to understand that why people forget the usual process of evolution and transformation to better systems when the older ones faced problems resulting into severe negative consequences. Even for economic systems, the world has seen various systems over different time periods, while improvements were made in each one of them following a crisis, the inherent weaknesses of these structures made them vulnerable during adverse economic conditions. Capitalism and Socialism have remained the two most prominent economic systems; we have seen them being implemented with various modifications however they have not been able to address basic economic evils resulting in often occurring financial crisis 

The significant variation in basic features of Islamic finance from its conventional counterparts depicts it as more sound and viable. Prohibition of Riba, Risk sharing, Asset Backing and Avoidance of Speculation of Islamic financial system ensure the positive impact of Islamic economic system. To make it more explicit I would like to mention some key distinguishing features between Islamic banking and Conventional banking
  • Conventional banking prices money while Islamic banking prices goods and services implying that Islamic banking supports real economic activity leading to overall economic well-being of the society by redistribution of wealth
  • Conventional banking is based on fixed returns while profit sharing is an essential element of Islamic banking for both asset and liability side of balance sheet
  •  Conventional banking works on the principle of risk transferring as it does not involve itself in trade and business while all participants of Islamic banking participate in trade and business and therefore all share the risk.
  • More stringent requirement of disclosure in Islamic banking as compared to Conventional banking make them less prone to financial fraud and crime.

However, still, Islamic Economic System is not as appealing as it should be even after multiple crisis of conventional system. One bitter realization that I had over that lunch discussion regarding the low acceptability of Islamic banking among masses is its “name”. A big majority including my “religiously” enlightened friends would have accepted this system wholeheartedly if there would have been a name other than Islamic banking. Replacement of this name of Islamic banking by any other name could have earned much greater acknowledgment and acceptability for the system.

So, It’s not only about Non-Muslim world, it’s a MINDSET which is not ready to accept this system. That mind set is the biggest challenge, a great impediment towards the growth of this industry.

I am absolutely not a religious person; rather my friends make fun of me indicating the conflict between my appearance and my inclination towards Islamic banking. My faith sensitivity has not driven me towards this system; I accidently got the opportunity to work for Islamic banking. Trust me the more I read and the more I get the comprehension of the subject I get more convinced with the sustainability of this system.

My growing interest in this new banking system and  my recent debate on these issues have made me initiate this blog which will have discussion and explanations on Islamic banking and for some time I will be posting about different aspects of Islamic banking. However, my blog is not just about changing the mindset with regards to Islamic banking but will encompass my personal experiences related to any area worth sharing.