Islamic Export Refinance Scheme:

Bank Alfalah Islamic offers IERS under SBP refinance schemes for pre-shipment and post-shipment financing to direct & indirect exporters. It provides working capital and liquidity to the exporters by utilizing Islamic financing modes like Running Musharakah, Istisna, Murabaha, Musawammah, Tijarah etc. IERS has two types (a) Part-I Transaction-Based (b) Part-II Performance-Based.

Export Financing under EXIM Bank:

Bank Alfalah – Islamic provides the Islamic Export Refinance Scheme (IERS) through EXIM Bank subsidy scheme. This product gives exporters access to cost-effective, shariah-compliant financing for their pre- and post-shipment needs. The financing is structured using Islamic modes such as Running Musharakah, Istisna, Murabaha, Musawammah, Tijarah etc. It has two types (a) Part-I Transaction-Based (b) Part-II Performance-Based.

Islamic Rupee Based Discounting:

The Islamic Rupee-Based Discounting (IRBD) facility under the Islamic Export Refinance Scheme (IERS) is a key tool for exporters seeking to generate their operating cash flows. This refinance facility allows them to get PKR based financing from Bank against Foreign Export Bill. Bank Alfalah (BAFL-Islamic) offers this facility in two stages: (a) Pre-shipment, where it’s structured using Islamic contracts like Running Musharakah, Istisna, Musawammah, and Tijarah, and (b) post-shipment, which is specifically offered through a Running Musharakah arrangement.

Islamic FE-25 Financing:

This is a shariah-compliant way for exporters to get financing in major foreign currencies like USD, GBP, and EUR. The financing is structured using Islamic contracts such as Running Musharakah, Istisna, Murabaha, Musawammah and Tijarah to support the exporter’s business operations.

Islamic Long Term Finance Facility:

This is a long-term financing solution for exporters to fund capital expenditures and expand their businesses. It is structured under the Islamic principle of Diminishing Musharakah, where the bank and the exporter jointly owns an asset, and the exporter gradually buys out the bank’s share over time.

Murabaha Export Finance:

BAFL Islamic offers Murabaha Export financing to cater working capital requirement of customers. Murabaha is one of the common Islamic finance contracts. It is particular kind of sale where the Bank Alfalah expressly mentions the cost of sold commodity it has incurred, and sells it to the Customer by adding some known profit.

Musawamah Export Finance:

Similar to Murabaha, Musawamah is also offered to cater working capital requirement, especially for procurement of raw material. However, in Musawamah the original cost of the goods is not mandatory to disclosed to the customer and direct sale price is negotiated and agreed upon between the bank and the exporter.

Istisna Export Finance:

Bank Alfalah Islamic offers Istisna financing for working capital requirement to its customers. Exporters involved in manufacturing and construction that require working capital (for wages, overheads and etc.) can opt for Istisna financing to facilitate payments. This facility is an ideal option for exporters whose substantial portion of overheads is related to production.

Tijarah Export Finance:

Alfalah Tijarah is a short term trade finance facility designed to meet the liquidity requirements of the Bank Alfalah Islamic Customers. It enables our Customers to sell their finished goods stock, meet their working capital requirements and enjoy the benefits of cash sales.

Once the purchase transaction is completed, Bank Alfalah will appoint the Exporter as agent to export the same goods in the market to third parties generally on credit basis and Customer will deposit the sale proceeds of export with Bank Alfalah.

Salam Export Finance:

A sale contract where the bank pays the full price of the goods upfront, and the exporter promises to deliver the goods at a specified future date. This arrangement provides convenience for the customer in managing working capital requirements.

Running Musharakah Export Finance:

Running Musharakah is a Shari’ah-compliant alternative to conventional Running Finance, based on the Islamic principle of Shirkat-ul-Aqd. Under this arrangement, the Bank and the Customer jointly invest in the core operating activities of the business, sharing profits at pre agreed ratio and losses in proportion to their respective investment ratios. It offers the customer flexibility to draw funds as needed, making it well-suited for managing working capital and other short-term operational needs.

Currency Salam:

This is a shariah-compliant Salam contract to meet the requirements of clients involved in export business. An exporter can receive an advance payment in one currency for a future delivery of another currency, it is a Shariah compliant alternate to Export Bill Discounting.