Qist Bazaar has secured a certificate from the Securities and Exchange Commission of Pakistan (SECP) verifying the Shariah compliance of its buy-now-pay-later (BNPL) offering, becoming the first non-banking finance company in the Republic to officially offer Muslim-friendly BNPL services.
Founded in 2021, Qist Bazaar utilizes the Musawamah concept to build its BNPL offering. The State Bank of Pakistan describes Musawamah as a general kind of sale in which the price of a commodity to be traded is stipulated between the seller and the buyer without any reference to the price paid or cost incurred by the former.
A requirement for the certificate, which was granted under the Shariah Governance Regulations 2018, is for Qist Bazaar to engage a Shariah advisor to structure its products.
“The first Shariah compliance certificate for a BNPL platform is a significant milestone, promoting Shariah compliant financial products and enabling new business models for tech-based entrepreneurs,” the SECP said.
Qist Bazaar in a statement said the certification from the SECP is part of its commitment toward financial inclusivity.