Master of Science in Islamic Banking & Finance


Department of Finance

Faculty/ School

School of Business Studies (SBS)

Date of Submission

Spring 2024


Dr. Mohsin Zahid Khawaja, Assistant Professor, Department of Finance


The need for insurance in the current situation is not hidden, and in some countries, many forms of life insurance are legally necessary for every citizen, but since there were many non-Sharia elements in insurance, the scholars forbade Muslims to be a part of this system. But since the need remained in its place, efforts were made to find a legitimate alternative to it, and Alhamdulillah, under the supervision of Shariah Scholars, a legitimate alternative to insurance came into existence under the name of “Takaful”. In Pakistan, Takaful rules were introduced in 2005 and after that time takaful companies are working on Wakalah Waqf model in Pakistan. Sometime after Takaful system was established in Pakistan, objections were raised by Sharia scholars on this system. In this study we have identified theses objections and their possible solutions or answers are explored and concluded that the objections raised by the Shariah scholars who consider this model impermissible are not the real issues. However, there is some room for improvement in this system, implementation of these improvements will make this system fully transparent.

Document Type

Restricted Access

Submission Type

Research Project

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