Impact of Islamic Finance Agribusiness and SMEs Growth
Author(s)
Iqra Latif Arain , Mr. Waqar Ahmed Sethar , Abdul Ghani Abbasi , Muzamil Mustafa , Waqar Mustafa , Amaar Hussain ,
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Abstract
The primary issue facing Pakistan's agricultural sector is inadequate access to finance. The study seeks to examine the effect of Islamic finance on Agribusiness and SME growth on the profitability of various modes used by Islamic banks. This research consists on one research question, three objectives. It utilizes quarterly “data “Islamic “banking “statistic “from 2008 “until 2019.The study based on secondary data, and this study is quantitative. Data gathered systematically to answers the research question which acquired from secondary sources such as the financial statements of Islamic banking with different sector of SMEs and Agribusiness. Data for this study collected from SBP websites of Islamic banking bulletin and different SMEs sector of Pakistan. Furthermore, the software SPSS EVIEWS has been used for data analysis. This study conducts linear regression and Durbin Watson method test results for the evaluation and analysis of data. And Unit root diagnostics test of appropriate result. The finding reveals that best Islamic mode for loaning agribusiness and SMEs. Besides, AGRI profit and SMEs “profit Performing Financing influence to agricultural “financing significantly growth of Islamic finance for agribusiness and growth for SMEs trend are show in this research, applying Shariah rules. Therefore financing must be considered to”given fully support to SMEs communities they can get easy business capital access. This research encourages Islamic banking professionals to pay more attention to farmers in Pakistan with Islamic financing. Finding for this study recommends enhancing the competency of Islamic finance tools in the agricultural sector as well as improving Islamic funding policy instruments.
Keywords
Islamic Bank, Agri Profit, Islamic Finance, Agri- Business.
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