Musharaka

Musharaka means relationship established under a contract by the mutual consent of the parties for sharing of profits and losses, arising from a joint enterprise or venture.  This form of financing on a partnership basis inculcates the true spirit of Islamic financing. It is a mode where returns are largely accrued to the parties in proportion to their participation, in terms of money, skills, market know-how, and effort. The share in the profits is mutually agreed based upon, more or less, on the scale of participation of either party on the above-mentioned factors. The loss is borne by each strictly in proportion to their capital contribution. KASB Modaraba provides financing under Musharaka arrangement by entering into   trading partnerships with credible and strong business firms dealing mainly in commodities, on a transaction-to-transaction basis or on a roll-over basis, on a mutually agreed profit sharing ratio.