THE CONCEPT OF ISTIØNÓ‘ IN ISLAMIC COMMERCIAL LAW (SHARÔ‘AH) AND ITS POSSIBLE ROLE IN THE DEVELOPMENT OF LOCAL FARMING IN PAKISTAN (ISTIØNÓ‘ BASED MODEL FOR FINANCING AGRICULTURE)

Being typical Muslim, the Pakistani farmers, particularly those living in rural parts, always dodge interest based loan – an economic activity that is rigorously prohibited by SharÊ‘ah. Islamic commercial law, on the other hand, offers, as an alternate way, the concept of IstiÎnÉ‘ – a manufacturing contract – for the accomplishment of various agricultural needs. The present work, therefore, aims to prove that how this typical contract can be meritoriously applied in such a way to overcome financial problems of farming community, predominantly of those living in rural areas of the country. To achieve this, an IstiÎnÉ‘ based model is proposed in the light of the theoretical framework, settled for it by the classical and contemporary Muslim jurists.To establish the viability of the model, the focused group research technique of qualitative research is used. While following this, two hundred (200) local farmers, both from urban and rural, are interviewed. Finding shows that the contract of IstiÎnÉ‘ can be effectively used for the fulfillment of various agricultural needs – both for crop and non-crop sectors. The suggestions, received from the collected data, are inculcated in the model for the enhancement of its practical utility at ground level.