Peshawar: The Frontier Education Foundation has now introduced the Islamic mode of financing being a demand of Shariah complaint financing. This may now attract the people of northern and southern regions to avail the financial assistance facility for development of education institutions. The present conventional system is discontinued and in future financial assistance will be granted on the basis of Diminishing Musharka, said a letter of the foundation
Moreover, in light of limited financial resources, high inflation rates and continuing depreciation in money value as well as to comply with Shariah standards, the foundation has decided to charge rent on KIBOR (One year) basis fixed at the time of financing with 50% mark down/cut rate with floor rate at 07% and cap rate at 10% for lease on the basis of diminishing musharka.
For more information, contact:
Government of Khyber Pakhtunkhwa
Tel: 091 921 1789