Degree
Master of Science in Islamic Banking & Finance
Department
Department of Finance
Faculty/ School
School of Business Studies (SBS)
Date of Submission
Spring 2024
Supervisor
Dr. Saqib Sharif, Associate Professor, Department of Finance
Committee Member 1
Dr. Saqib Sharif, Supervisor, Associate Professor, Department of Finance
Keywords
Hajj Funds Administration, Tabung Haji, Badan Pengelola Keuangan Haji, Ministry of Religious Affairs and Interfaith Harmony.
Abstract
Hajj is one of the five pillars of Islam that is mandatory for every Muslim adult who is physically and financially sound (Sahib-e-Istetaat) to undertake this ritual (Ibadah) at least once in their lifespan. In Pakistan, to facilitate Muslims in fulfilling this religious duty, Ministry of Religious Affairs & Interfaith Harmony (MoRA) has been assigned to plan for Hajj under the 1973 Constitution. Countries like Malaysia, Indonesia, Nigeria and Maldives etc. have also established separate legal entities, like Pakistan, to manage the funds of Hajj depositors and provide services to pilgrims and administering the Hajj deposits in a way that it can benefit them in the shape of Halal returns (i.e., Riba free earnings). Although these institutions have similar objective to facilitate pilgrims in carrying out the religious obligation, such as, accommodation arrangements, meal, stay at the Holy land, travel and other related tasks, but their mode of operations may be substantially different. Therefore, this paper has dual objectives; firstly, the paper aims to evaluate the Hajj fund management of two economies i.e., Indonesia and Malaysia; the study also critically analyzes the current structure of management of Hajj funds in Pakistan. Secondly, the study suggests an efficient operational structure / model for Pakistan’s Hajj fund management based on the best practices of Indonesia and Malaysia. The paper argues setting up of an independent entity within MoRA, whereby public can start saving at an early age by entering financial contract, thus efficient utilization of Hajj funds can be ensured that provides optimum facilitation to the potential pilgrims of Pakistan at a reasonable cost. Overall, this project has important policy implications for the Federal Government, i.e., MoRA, financial regulators, including both the State Bank of Pakistan (the Central Bank) and the Securities Exchange & Commission of Pakistan (SECP – Public enforcer), social implication for potential pilgrims who want to perform Hajj under the government scheme.
Document Type
Restricted Access
Submission Type
Research Project
Recommended Citation
Jamal, H. (2024). Making Hajj Affordable for Pakistanis: Proposed Model from the Experience of Indonesia and Malaysia (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/etd-ms-ibf/46
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