Instalment banking

For the salaried, buying a high-priced product like a refrigerator, TV, washing machine etc is difficult. But if they could buy the product on an instalment basis, it would become easier for them. Banks are supposed to provide such services to the general population but in Pakistan banks seem more interested in providing loans to the government or to large companies only.

The missing instalment payment system in Pakistan can be an opportunity for the government and Islamic banks that are sitting idle. The government should ask Islamic banks to provide such services while also maintaining rules on how long the instalment period should last, initial limits, record management, account movement from one bank to the other and so on. This way Islamic banks will start doing business, the general public will be able to buy high-price products, local industries will increase production and economic activities in Pakistan will increase.

Engr Shahryar Khan Baseer

Peshawar