Tax Office Operation Transformation Essay Example for Free

Tax Office Operation Transformation Essay Governments of developing countries are constantly scrambling to raise the revenues required to finance higher service demands expected by their citizens and the infrastructure (economic, social and environmental) that will enable them to grow the nation towards being industrialized. And to sustain the all imperative comparative advantage over neighbouring nations. Taxation revenues continue to be the main source of revenue for Government spending. This in turn requires well-designed tax policies (new taxes and tax reform) that are translated into clear legislation and are administratively feasible. Perhaps the greatest challenge facing these countries is to improve the effectiveness of their tax administrations.[1] Common Challenges Tax Administrations in developing country contend with the same range of challenges with developed nations, although the significance of typical collection issues may be greater. As a result these countries suffer significant losses in revenue collection. Introducing tax initiatives such as self-assessment and GST does alleviate the revenue leakages to certain extent, however the agencies capacity and capability to administer an effective and efficient taxation system is the ultimate determinant to maximizing collections. It has longed been realized that the existence of widespread tax evasion as part of the hidden economy is a critical concern to developing countries, as it is with developed nations. Hidden income can be defined to include legitimate earnings which are hidden actively or passively to evade tax, as well as illegal earnings derived from non-lawful operations and services. Without trivializing the complexity in dealing with the later type of evasion, the taxpayer’s perception of the administration influences their obligation behaviour. It’s more so evident in developing countries where the administration may not be seen by taxpayers as service organization nor as an active enforcer. For example, common trends include: Â  Inability for taxpayers to get information from or transact with the agency, either low responsiveness, inconsistent advice, multiple hand-offs, huge queues at the service counters etc. Assessments and refunds taking months to process, often taking over six months to make a refund No urgency for Taxpayers to get registered, especially with small to medium enterprise and self-employed Lodgments and payments not pursued actively by the agency, often resulting in over 30% of non-filers Accumulating Debt not pursued in a timely manner by the Agency. Over the years can amount to considerable loss in non-recoverable debt (ie. timing issue). Low level of compliance actively, in terms of education and enforcement. Taxpayer being audited is seen as just bad luck. The Problem The common complaint of the developing country’s tax administration is the lack of resources. In terms of priority, these agencies are more focused on transaction processing activities which are largely manually driven. They are constantly bogged down dealing with never ending processing back-logs, including low turn-around in assessments, refunds, audit cases, appeals, rulings and so on. A large portion of the administration’s staff would be devoted to these low-value activities, which actually does not grow the revenue. The executive management of these administrations is well connected to the best-practices being adopted elsewhere, and understands the positive application to their own environment. They are challenged by the expected rate of change imposed on their agency, constantly battling the needs of Government to collect more and implement new policies quickly, at a lower operational cost. Taxpayers who demand the same levels of services they come to expect from the commercial sector Employees who are frustrated no having the revenue-agency tools to deliver superior services or for effective compliance enforcement. In this hast to modernize the tax agency often turns to automation and Information Technology as the savior and try to implement large amounts of innovation in a short period. As examples, interactive internet service, imaging for data capture, data warehouse, mobile audit workbench, IVR/CTI. All of these are essential IT enablers for the business; however, they often fall short of delivering the benefits in improving service and compliance enforcement in developing countries. The solution Lesson learnt elsewhere tell us that certain characteristics of an agency are central to support business innovation (new ways of doing business) using IT. Without these characteristics, the agency would cripple its efforts to modernize. These characteristics are: Having the building blocks for tax processing, Registration, Lodgment, Payment and Policing. High level of data quality Effective Change Management ability Building Blocks for Tax Processing The main functions of a tax administration, in dealing with taxpayers, aside from actual tax collection or sanctioning non-compliance, largely involve gathering and processing information. The four interrelated blocks are: Registration: Identify potential taxpayers and register taxpayers. Each taxpayer would be identified via a tax identification number and contact details are maintained. This information is core all business activities and imperative to maintain accurate and completed details. Lodgement: Capture, quickly process and record information to assist taxpayers in meeting their tax obligation. Non-lodgment needs to be managed [1] Developing The International Dialogue on Taxation, A Joint Proposal by the Staffs of the IMF, OECD and World Bank, 13 March 2002.

The Signal Man :: English Literature

The Signal Man Through out the story Dickens has created a sense of horror and suspension in his description of the setting, landscape, physical surroundings and the weather conditions. At the start of the story the signal man hears a voice shouting down to him from up above, instead of looking up in the direction he heard the voice coming from, he turned himself about and looked down the line. This seems rather odd as you would normally look to where you heard the voice. The man shouting down to him, was on a high cliff and he was steeped in the angry glow of a sunset and the signal man’s figure was foreshortened and shadowed, down in the deep trench so it was rather awkward for the man to see who he was shout to. The man repeats ‘Halloa! Below!’ only then does the signal man catch on who is shouting to him, so he turns himself about , and raises his eyes and say the mans figure high above him. It then goes on to say that the signal man looks up to him without replying, and he looked down at him without pressing him too soon with a repetition of his idle question. There then came a ‘vague vibration’ in the earth and air, quickly changing into a violent pulsation. This suggests that there is a disturbance in nature, this means that the train is coming. After the train had passed, the signal mans looks up again and motioned towards a point on the narrator’s level, the man then heads for that point. As he headed for that point, he noticed a rough zigzag path notched out, this suggests that there could be danger. It then goes on to describe the setting. The cutting was extremely deep, and unusually precipitous, it is a very dismal and dreary setting. It then says that the notched out path was made through a clammy stone that became oozier and wetter as it leaded further down the cliff, this reinforces the setting to be very depressing and gloomy. As he made his way down the zigzag path, the signal man looked as though he was awaiting his arrival. He had his left hand at his chin, and his left elbow rested on his right hand, crossed over his breast His attitude was one of such expectation and watchfulness, that the man stopped at it a moment, wondering at it. This could suggest that the signal man was wondering weather the narrator was a ghost or not. The signal man had a very weary appearance; it says that he was a

Student Cramming Essay

Abstraction This survey aims to find whether jaming behaviour had a important consequence on the memory keeping pupils who took Physics 82 ( Fundamental Physics II ) during the 2nd semester of school twelvemonth 2006-2007. A trial was given to these pupils after one semester ( first semester. 2007-2008 ) . A comparing was made between the tonss of pupils who acknowledged frequent usage of jaming methods and those that did non. Datas shows that keeping decreases with clip whether the pupil crammed or non. However. pupils that crammed have faster rate of lessening in memory keeping. 1. Introduction Cramming is defined as analyzing a comparatively big sum of capable affair in a short period of clip. It can be regarded as a despairing step of pupils to go through tests. complete undertakings. The effect of such mode of survey is low memory keeping [ 1 ] . This survey aims to corroborate or confute this stereotype. It is possible that classs reflect merely short term larning since they are given at the terminal of the semester and there is no confidence for long term keeping. Harmonizing to Duda. memory keeping is enhanced if. for illustration. a five hr survey session is broken down into five separate one hr Sessionss [ 1 ] . This applies to jaming where a individual survey session merely before an scrutiny is less effectual than several short survey Sessionss. A study was conducted to verify these premises utilizing UP Los Banos pupils who took Physics 82 during the 2nd semester of school twelvemonth 2006-2007. The study was limited to these pupils who are presently enrolled in Physics 83 during the first semester of school twelvemonth 2007-2008. Physicss 82 screens cardinal constructs in electricity and magnetic attraction. This survey aims to: 1. Determine whether there exists a correlativity between the chronological order in which Physics 82 constructs were taught and the students’ memory keeping of these constructs. 2. Determine the per centum of pupils who acknowledged to hold employed jaming methods for their Physicss 82 semester. 3. Determine whether there is a appreciable difference between students’ concluding class ( 1-5 graduated table ) in Physics 82 and their study class for both for the crammers and the non-crammers. 1. 1 Hypothesiss 1. There no strong positive additive correlativity between the chronological order in which PHYS 82 constructs were taught the old semester. and their memory keeping of these constructs. Earlier subjects taught are more maintained than earlier subjects. 2. There is no important difference between crammers and non-crammers concluding class ( 1-5 graduated table ) in Physics 82. and between crammers and non-crammers study mark. Grade is non a good index of jaming behaviour. 3. There is no strong additive correlativity study mark and Physics 82 concluding class for both crammers and non-crammers. Grade is non a good index of memory keeping. 4. There is no important difference between the between the students’ concluding class ( 1-5 graduated table ) in Physics 82 and their study grade both for the crammers and the non-crammers. Cramming has no important consequence on the student’s memory keeping of Physicss 82 constructs. 2. Methodology The study population consisted of all Physicss 83 pupils that took Physics 82 the old Semester. The Survey was done in category hours of Phys83 to all pupils. The population needed was filtered out afterwards. The study inquiries included 16 subjects in Physics 82 which were divided into 4 sets reflecting the first to the last one-fourth of the semester. Questions were generated for each subject. Five basic equations and two to four conceptual jobs were taken from the subjects. This was to guarantee that the study was representative of the whole Physicss 82 semester. The questionnaire study was divided into three parts. personal information. fiting type and multiple pick. The first portion consisted of personal information and besides asked the pupils to rate themselves in a graduated table of 1 to 5 where 5 was the highest. The information taken were the undermentioned: ofrequency of jaming in exams and/or undertakings: â€Å"I cram my survey for the dark before exams† ostudy modus operandi: ( 1-2hrs ) . ( monthly ( 1 ) †¦ . hebdomadal ( 5 ) ) I do non analyze for quizzes/do assign in front oPreparation clip for test ( a dark before ( 1 ) †¦ . three hebdomads before ( 5 ) ) I review merely near exam day of the months oStudents claim on good keeping: â€Å"I forgot my Physicss 82† oLikelihood of jaming in the hereafter: â€Å"I expect myself to jam for the coming tests due to ineluctable fortunes. † From these the pupils were so categorized to two sets as non-crammers ( labeled as R ) . holding less than 65 % of entire points in portion I. and crammers ( C ) whose high mark in portion I acknowledge their usage and likely hereafter usage of jaming methods. The per centum of pupils C and R in the population were so taken. The undermentioned comparings were made: ( 1 ) between C and R Physics 82 concluding class. ( 2 ) between C and R study tonss. and ( 3 ) between Physics 82 concluding class and study tonss of all respondents. In the 2nd portion. pupils were asked to fit an equation with a construct. There were 20 equations and matching constructs. Each lucifer was given 1 point. Examples of the inquiries were [ 2 ] : Column AColumn B 1. Coulomb’s Law2. 1 Volt K. 1AmpCoul=1Joule/Coulomb Part 3 ( multiple pick ) consisted of 8 conceptual and 8 computational inquiries. The followers are some illustrations: 1. Which of the followers is false about electric potency? A. is the energy per unit charge B. is dependent of charge go throughing per unit clip in a music director. C. it is a scalar measureD. electric potency surfaces lines cross each other2. Which of the undermentioned is true?I. An Ohmic Conductor has a additive Voltage and Current relationship. II. When Ohm’s Law is non obeyed the electric resistance ( ? ) of a substance is changeless in the equation E=?J ( J is current denseness ) .A. I merelyB. II merelyC. Both I and IID Neither I and I 1. The strength of visible radiation is Io=100 Watts 1 metre off from its beginning. What is its strength if the distance is doubled? A ) I=Io/4B ) I=Io/2C ) I=0D ) I=Io/8Tocopherol ) none of the above 2. In a DC R-L circuit. the current rises bit by bit to 5 ?A in 8?sec. What is the induced EMF of the 10H inductance? A ) 6. 25VB ) 0. 625VC ) 6VD ) 12. 5VTocopherol ) none of the above Problem work outing accomplishments were besides tested to derive penetration on the student’s accomplishments in runing some equations in portion 2. Separate 3 consisted of 16 points of 2 points each. The inquiries were structured so that 5 fiting type points ( Part 2 ) . 2 conceptual and 2 computational multiple pick points ( part3 ) represented each one-fourth of the Physics 82 semester. It was ensured that all points in the four quarters are of comparable degree of trouble. In order to prove the dependability of the study. we repeated some jobs in the questionnaire so as to deduce whether the pupils focused on replying the study or simply guessed the replies. The questionnaire had a sum of 52 points. 20 points for portion two and 32 points for portion three. Each one-fourth has perfect mark of 13 points. A correlativity between the sequence of these quarters and mean points per one-fourth was taken. 3. Consequences and Discussion All of the 48 Physicss 82 pupils who are enrolled in Physics 83 took portion in the study. Simple statistical methods were employed since the study involved the whole population. In portion I. it was assessed that there were about 32. 56 % crammers and 67. 44 % non-crammers in the population. The mean of the concluding classs of non-crammers was 2. 36 while that of those who cram was 2. 42. Since the scaling system is in a graduated table of 1-5 with 1 being the highest. the 1 with lower mean implies a higher class. Those who cram tends to hold a lower class than those who do non jam. This tendency was besides observed in the difference in the norm of study tonss between the two classs where non-crammers had a 59. 41 % norm and crammers had a 55. 47 % . The difference between the two norms was 3. 94 % . These difference is non significantly discernible in the 1-5 scaling system ; therefore. illation in jaming behaviour based on classs is non dependable. Figure 3. 1 Linear Regression of matching mean study mark of pupils per one-fourth in the fake test to prove natural debasement of keeping through clip. In figure 3. 1 the tendency of mark addition is shown with a correlativity of 0. 566. This shows a natural debasement of memory keeping through clip since in the most recent one-fourth. 4th one-fourth. the mean class of the pupil in the fake test were higher than their mean class in the old one-fourth. The mean points of 1st & A ; 2nd. and 3rd & A ; 4th are so averaged in braces that reflected foremost and 2nd half the of the Physics 82 semester. Figure 3. 2 Average tonss of pupils per one-fourth in the fake test. The norm of the 2nd half is 7. 802326 which is higher than that of the first half which is equal to 7. 476744. This farther justifies the debasement of memory of keeping with clip. Figure 3. 3 Linear correlativity of Physicss 82 concluding class and study mark Figure 3. 3 shows the correlativity between the study mark and the concluding class of the pupils in natural philosophies 82 last semester. The negative correlativity is due to the fact that 1 is the highest in the 1-5 graduated table Rating System. Students who got high classs in Physics 82 besides got high tonss in the study. The correlativity of -0. 62263 implies that the concluding class of the pupils is a strong index of memory keeping where a high class likely implies high keeping. Table 3. 1 Average difference and average difference between natural philosophies 82 concluding class and study grade CategoryMean DifferenceMedian DifferenceCrammer-0. 839-0. 5Non-Crammer-0. 664-0. 25 Table 3. 1 shows the difference between natural philosophies 82 concluding class and study class ( 1-5 class system ) . The negative mark indicates that all the pupils have lesser study classs compared to their concluding class. There is a important difference between the debasement of class between crammers and non-crammers. The crammers’ class decreased by 0. 839 while that of non-crammers’ decreased by 0. 664. The crammers significantly had less memory keeping than those of the non-crammers. 4. Decision Memory keeping undergoes debasement procedure through clip. This debasement is further increased by jaming behaviour. Memory keeping has a natural debasement through clip both for crammers and non-crammers. The earlier subjects were less retained than the most recent subjects. Cramming had a important consequence on the student’s memory keeping of Physicss 82 constructs. There was a strong additive correlativity study mark and Physics 82 concluding class as shown in figure 3. 3. Grade is a strong index of memory keeping since it was shown that those who got higher classs had better public presentation in the fake test. Therefore. pupils who obtained higher classs tend to hold more constructs retained. Cramming was shown to lend to memory loss. Crammers had a 0. 5 average bead in class between Physicss 82 concluding class and study grade whereas non-crammers had a average bead of 0. 25. The consequence of this survey is consistent with Duda’s survey which affirms the neg ative consequence of jaming. The construction of this survey may be implemented on other topics to farther measure the effects of jaming behaviour on memory keeping and may affect other standard on pupil academic public presentation. Mentions [ 1 ] J Duda. Survey shows trial cramming has negative effects on classs. hypertext transfer protocol: //wc. Arizona. edu/papers/94/91/01_2_m. hypertext markup language. Last modified on Feb 2. 2001. [ 2 ] H. D. Young and R. A. Freedman. University Physics: The Modern Physics. 10th edition. USA: Addison-Wesley Publishing Company. 2000. [ 3 ] Statistics. Encyclopedia Britannica 2005 Deluxe Edition CD. USA. Encyclopedia Britannica Inc. 2005

Islamic banking in the world - Free Essay Example

Sample details Pages: 10 Words: 3016 Downloads: 7 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? Executive summary: Islamic banking is a worldwide phenomenon involving a variety of institutions and Instruments offering Sharia base modes of finance, during the last few decades getting progress and facing challenges. Now most commonly there are three Islamic finance school of thoughts applying into the Islamic world they are Pakistani, Gulf and Malaysian school of thoughts. Islamic finance have a big market but there are some challenges both in secondary and primary market most commonly risk management and liquidity of funds is a big issue but in the Pakistan Islamic banks getting groom over the period of time by introducing unique Islamic mode of finance instruments. The graphical presentation of the different mode of Islamic finance and process. Don’t waste time! Our writers will create an original "Islamic banking in the world" essay for you Create order Moreover, all the Islamic Institutes monitor by the State Bank of Pakistan regulatory authority and working over the guidelines for risk management and refining their performance and play a vital role for the growth of country economy. Comparison of existing Islamic institutes and their performance over the period of time and how the banks deals with the overdue amount and how they manage these funds and putting them into the charitable work. Introduction: This report covers the issues of Islamic Banking and how State Bank of Pakistan regulates it according to the Sharia Compliance and enforces the Islamic banking institutions guidelines and principals for risk management. Pakistan holding world second largest Muslim population and having the lot of attraction for the investor dealing in Islamic base business and the report cover the performance of the Islamic institutions as compare with the conventional financial institutions. Moreover, Islamic banks market share their yearly bases performance and growth as compare with the previous years and during the last ten years performance of different banks operating Islamic services in Pakistan and their growth comparison that shows Mezzan Islamic bank performance and how they offer their sharia base service like Ijarah, Mudarbah, Musharkah, Murabaha and Sukuk and their graphical presentation of bank and client process that helpful to understand that how Islamic mode of finance work according to the sharia compliance. In year 2010 the total conventional banking deposits was $78bn and the projected growth rate was 13% p.a. while the share of Islamic banking deposit in Pakistan financial market was $12bn and projected growth rate was 81% p.a. with 440 Islamic operational branches. Need For Islamic Banking: Recent study published in United States stated that the growth rate of world Muslim population is higher than the world non Muslim population and it is believed and projected that it will be the quarter of the world population near 2030. Pakistan, which has seen a rise in radical Islam in current months, will chase Indonesia as the worlds most populous Muslim nation. Majority of the people seeking to invest into the Hala mode of financing and people fad up with the traditional financial system where institutions based on interest. Moreover, Islamic financial system based on the principal of Sharia, which mean they believe and follow the Islamic school of thoughts prohibition on the payment and recipient of interest this is the basic reason that make difference between the Islamic financial institutions and their Western counterparts. Government Regularity: Pakistan was among the three countries in the world that had been trying to implement interest free banking at national level. Islamic Banking is one of the rising field in global financial market and having the potential all around the world. The Islamic Banking is one of the rising field in global financial market and first full flag Islamic Banking Department was established under the supervision of State Bank of Pakistan (SBP) in 2003 and having task to promote or established financial help according to the Sharia Complaint. SBPs Islamic banking polices allow the people to establish their financial relationship with Islamic banks according with their Islamic beliefs. SBP feels the responsibility for the promotion of Islamic Banking and they work on three strategies. Allow the conventional banks to establish their Islamic banking branches throughout the country. Support the private sector to establish Islamic banks. Enforce the existing conventional banks to open stand alone Islamic banking branches. Before commencement of business a reputed sharia advisor has to be appointed according to the given SBP policy. Banks ensure all their document services authorised by their sharia advisors. Banks are required to undertake comprehensive internal audit at least once in a year. Islamic and commercial banks both shell have a separate schedule of charges authorised by their sharia advisors. Risk Management: SBP enforce the Islamic Banking Institutions to follow the guiding principles of risk management established by the Islamic Financial Services Board (IFSB) that helpful to minimize the financial risk and these principals are applied over the six categories of risk they are. Market Risk Credit Risk Operational Risk Liquidity Risk Rate of Return Risk Equity Investment Risk Sharia Compliance Framework: Shariah compliance is the most important feature of Islamic finance. SBP established a comprehensive sharia compliance structure for the credibility of the Islamic Banking Institutions and the structure consists of. Sharia Board at SBP Sharia Advisor Forum Sharia Advisor Model agreement of Islamic mode of financing Guidelines for sharia compliance in IBIs Sharia compliance inspection Industry Progress and Market share: Islamic banks in Pakistan producing amazing results during the time when conventional financial system fully griped even all around the world and having more financial tools than Islamic sector. Under the current policy first Islamic banking licence was granted on in year, 2002. In year 2010 the total conventional banking deposits was $78bn and the projected growth rate was 13% p.a. while the share of Islamic banking deposit in Pakistan financial market was $12bn and projected growth rate was 81% p.a. with 440 Islamic operational branches. It is also important to compare the Pakistani Islamic financial sector with the progress in other countries. Malaysia first Islamic bank was established in 1983 and till 2007 its stand on 13%, Bahrain Islamic Bank stands on 8% during 30 years and Indonesia Islamic banks started their service science 1990s and still it has progress around 1.67% all the above figures shows that the performance of Islamic banking sector in Pakistan comparatively better or satisfactory than other global countries especially east Asian countries. Banking and Finance Shariah Mode of Finance: Islamic finance sector in Pakistan offer a wide range of shariah base service to the investors. Following are the shariah complaint modes of banking and finance. Trading Mode Participatory Modes Debt Based Mode Other Modes zIjarah or Ijarah wa Iqtina Mudaraba Qard Wakalah Murabaha Musharka Assignment of Debt Musawamah Diminishing Musharka Kafalah Salam Equity participation in the form of shares in a corporate entity Istisna Tawarruq Charity Fund: SBP, policy for the income generated by the non-Sharia based resources or the income incurred by the bases of any penalties either its a late payment charges received by the client in default or overdue cases etc are transfer to the charity fund that income utilize for the charitable or social welfare purposes. Banks Offer Services: Following are the year wise entry of Islamic banks in Pakistan economy. Market Share 2003-2007: To analyse the market share its important to check both sides of the balance sheet to discourage the unethical information plays by the account managers and some time auditors play role to help them just for generating accounting profit and get good response from the market. SBP, keep focusing over the accounting performances on both Islamic and Conventional services sector and finally announced yearly bases comparison of the both sectors for encourage the investors. The table below shows the market share performance comparison from 2003-2007. Branch Network Growth: In the Pakistan economy Islamic banking sector performing amazingly and by offering riba free services Islamic banks in overall branch network of the industry has increased over period of time and getting higher pace. All are the major banks in Pakistan now offering Islamic bank services. By 30th June 2008 total asset of Islamic banking industry in Pakistan was over Rs. 225 bn which was the 4.5% of the total banking industry assets. In the four provinces of Pakistan and AJK, more than 330 branches offering Islamic service. SBP, enforce all the conventional and non conventional to open their Islamic branches in all major cities and towns covering all the four provinces of the country and AJK. The table below shows growth in the branches network of Islamic banking industry science 2003-2007. Bank wise Share and Total Assets: Islamic banking system consider the alternative of the existing conventional system and the percentage value of Islamic banking assets growth in Pakistan gradually getting pace during the years 2003-2007 that was 85.2%, 241.8%, 62%, 66.9% and 72.6% respectively. Both IBs Islamic Banks and IBDs Islamic Banking Divisions enjoying growth, but rapid growth seems from year 2004 due to the large network of full fledged Islamic banks over more than 50 cities with the support of conventional bank IBs. The table below shows the assets of Islamic banking industry in Pakistan during the year 2003-2007. The bank wise share of Islamic banking industry Assets is as on 31st December, 2007. It is interesting and noticeable the highest growth that is 32.62% gaining by the fully fledge Pakistan most leading Islamic bank Mezzna Bank Limited (MBL) while the three big commercial bank have not showing the sign of market share they are UBL, NBP and HBL that predict the confidence of people over Islamic banks in Pakistan. Deposit and Bank wise share: Deposits are the key of success for any financial institutes mainly it is important for Islamic banking that target different people from different background during the time when conventional banking having the large share of market but the performance during the years 2003-2007 predict the scope of Islamic banking and its success against the conventional system. Islamic banking divisions and Islamic banks gaining remarkable growth in deposits during the years 2003-2007 that is 65.3%, 259.5%, 65.4%, 67.7% 76.0% respectively. Moreover, rapid progress shown in year 2004 because aggressive banking start from Bank Alfalah Limited and the new entry of Al Barqa bank and after the couple of year Dubai Islamic bank, Emirates Global bank, Bank Islami and Duawood Islamic bank start their full fledge business and contribute to lead the deposit position up to mark during the year 2006 and 2007. Bank share deposits performance during the year 2003-2007 is as under. Financing and Banks Share: Liquidity management play a vital role for the existence of any financial institute. SBP provides a complete range of instructions to all Islamic banks to keep follow them for getting the good results from the market not only provide the policy also provide the a complete sharia compliance cell and sharia advisors for risk management. During the period from 2002-2007 Islamic banks financial performance was amazing that was 97.8% while the respective year growth was 135.1%, 218.4%, 66.4%, 43.4% 63.5%. figures show that Meezan bank capturing almost one third of financing while Bank Alfalh again leads the category of conventional banks having Islamic banking branches with the addition of BankIslami, Emirates Global, Dubai Islamic and Dawood Islamic yearly financing growth rate getting good pace every year. Composition of different mode of Islamic financing that shows saving deposit initially grew at high pace but latterly fixed deposit performance relatively better growing rate. By offering the credible shariah compliance, help to develop the interest of the customers. For the Islamic Banking Institutions ideal modes of financing belong to the low risk share category i.e. those which usually generate a fixed return. Among these Murabaha (cost plus mutually agreed profit margin). Ijara (leasing) are the most attractive and popular modes of financing. However, lately the share of Diminishing Musharaka has also grown at a rapid pace leading towards diversification of the Islamic banks financing portfolio Islamic Mode of Financing: Ijarah: Ijarah is a term of Islamic Fiqh Literally, it means To give something on rent The term Ijarah is used in two situations: It means To employ the services of a person on wages e.g. A hires a porter at the airport to carry his luggage Another type of Ijarah relates to paying rent for use of an asset or property defined as LAND in Islamic Economics Ijarah is an Islamic alternative of Leasing. Leasing backed by an acceptable contract is an acceptable transaction under Shariah. The question of whether or not the transaction of leasing is Shariah compliant depends on the terms and conditions of the contract. Several characteristics of conventional agreements may not conform to Shariah thus making the transaction un-Islamic and thereby invoking a prohibition. Risk and rewards of ownership lies with the owner i.e. any loss to the asset beyond the control of the lessee should be borne by the Lessor. Late payment penalty cannot be charged to the income of the Lessor. Lease and Sale agreement should be separate and non contingent. Bank Ijarah Process: The customer approaches the Bank with the request for financing and enters into a promise to lease agreement. The Bank purchases the item required for leasing and receives title of ownership from the vendor The Bank makes payment to the vendor The Bank leases the asset to the customer after execution of lease agreement. The customer makes periodic rental payments as per the contract At the end of the tenure customer can purchase the asset from the bank with the help of separate Sale agreement. In case of sale, title of property is transferred to Buyer In case of Ijarah, title remain with the Lessor Only the use of the property is transferred to Lessee Murabaha financing: Murabaha is a particular kind of sale and not a financing in its origin. Where the transaction is done on a cost plus profit basis i.e. the seller discloses the cost to the buyer and adds a certain profit to it to arrive at the final selling price. The seller discloses the cost to the buyer and a known profit is added. Payment of Murabaha price may be: At spot In installments. In lump sum after a certain time Some basic rules should be the part of Murabaha base financing, they are Sale price should be determined. Asset to be sold must exist. Sale must be unconditional. Assets to be sold: Should not be used for un-Islamic purpose. Should be in ownership of the seller at the time of sale, physical Step by Step Murabaha Process: Following are the steps that a bank takes during offering Murabah base services. The client and the bank sign an overall agreement whereby the institution promises to sell and the client promises to buy the commodity from time to time on an agreed ratio of profit added to the cost. This agreement may specify the limit up-to which the facility may be availed. An agency agreement is signed by both parties in which the institution appoints the client as his agent for purchasing the commodity on its behalf. The client purchases the commodity on behalf of the institution and takes possession as the agent of the institution. The client informs the institution that it has purchased the commodity and simultaneously makes an offer to purchase it from the institution. The institution accepts the offer and the sale are concluded whereby ownership as well as risk is transferred to the client. Diminishing Musharakah: Musharkah is the form of Shirakat partnership and following are the types of Musharkah. Shirkat-ul-Milk: Joint ownership of two or more persons in a particular property Shirkat-ul-Aqd: A partnership affected by mutual contract. It can also be translated as a joint commercial enterprise In Diminishing Musharkah the financier and the client have a joint ownership of equipment, property or a commercial enterprise. The share of the financier will be divided into a number of units The client will purchase these units one by one periodically until he is the sole owner of the property Bank and Diminishing Musharkah Process: These are the components that a Bank perform during Diminishing Musharkah contract or agreement. Joint ownership of the Bank and customer Customer as a lessee uses the share of the bank Redemption of the share of the Bank by the customer Istisna: Istisnaa is the second exception to the rules of sale where a sale is allowed without immediate delivery of the goods sold. Istisnaa is a contract of sale of specified items to be manufactured, with an requirement on the part of the manufacturer to deliver them to the Customer upon completion. It is not permissible that the entity of an Istisnaa contract be a tangible existing and identified capital asset. An Istisnaa contract is permitted only for raw materials that can be transformed from their natural state by a manufacturing or construction process involving labor. The time of delivery of goods does not necessarily have to be fixed in Istisnaa however, a maximum time may be agreed upon between the parties. The Istisnaa price can either be paid in advance, or in installments or at the time of delivery of goods. The price of Istisnaa transactions may vary in accordance with variations in the delivery date. Sukuk: For the liquidity management offered sukuk into the Islamic finance money market which is basically the certificate of equal value representing proportionate ownership of tangible assets. This ownership comes in effect after the completion of payment and with the investment of received funds. Sukuk representing equity share in a particular business or investment portfolio (based on Musharakah/ Mudarabah). Sukuk representing receivable or future goods (based on Murabaha or Salam or Istisna). Salam and Murabah base Sukuk are the non tradeable while tradable Sukuk are tangible assets or proportionate ownership of a business or investment portfolio are tradable for instance Ijarah or Musharkah/ Mudarbah base Sukuk. Moreover, Sukuk use for the liquidity need but still it has some objection or restriction during offering into the market. Sukuk holders have the complete ownership rights. Manager cannot lend money when the actual profit is less than the expected. Before offering the sukuk into the market must abide by the Sharia supervisory board. Sukuk should be issue over the new industrial and commercial venture.