Commodity Murabaha facility refers to the process of purchasing a commodity on a deferred payment price basis determined through Murabaha (Profit sale) and selling it to a third party for a spot price to obtain cash.
The Bank will be purchasing commodities from commodity traders which will be enabled through offer and acceptance.
After purchase of commodity from the Bank, the Client will then sell the commodity onward to a third party (to avoid Bai al Inah) against spot payment basis.
The Bank on behalf of the client will then be selling the commodities to another party which is not the earlier commodity trader from which these commodities have been purchased and this sale will also be concluded through offer and acceptance.
Both the transactions will be independent and will be executed through separate sets of documentation duly approved by the Shariah Board of the Bank.
In Commodity Murabaha different Shariah compliant commodities such as Palm Oil and Plastic Resin, are sold. The commodities will be bought and sold in PKR (Bursa offers trading in PKR).