 In this module, we would look into a very interesting product being offered by Islamic banks in Pakistan. This in a way is unique to the Pakistani Islamic banking market. This product is called Running Musharka as a replacement for overdraft facility. We would cover this topic in two modules. So this one, we would be looking into the basic structure and then we would further explain this product in the next module. Running Musharka product as an alternative to overdraft financing facility is unique to Pakistan. This is only in Pakistan that Islamic banks and other conventional banks are offering Islamic banking services. For example, Mezan Bank determines the amount of the facility to be offered to the client. So this facility is given and the client has an option to draw down as and when the client needs the money. So that money, one crore rupees is there in an account whenever the client needs this money, he would draw down money from there. Similarly, once the client has used this money and he is no more in need of that money, that money would be put back into that account. This is called overdraft. When money is needed, it should be used. And when the need is over, the money should be returned. In an Islamic context, this kind of overdraft facility was a very difficult structure. However, Islamic banks in Pakistan have come up with an alternative which actually works very well both for the banks as well as for the corporate clients. During the period when the client is using an amount drawn down for that time period, Mezan Bank or any other bank which is offering this facility and the client, they would become partners or they would be deemed partners. They would not become partners legally but they would be considered as partners for that time period for which the facility has been drawn down. Based on this running Musharaka, the bank and the client will distribute annual profit according to a pre-agreed format. Now it is necessary to understand with great caution that the amount of Musharaka which the bank gives is also known. And there is a formula which is going to be used for distribution of profit that is known as well. And hence, there should not be any serious problems with this kind of product being offered in the market. I mean a problem from Tariya viewpoint. Legally and from banking regulations viewpoint, this is an excellent product anyway. Let us try to understand this with the help of an example. Like our previous example, our company A is seeking an overdraft facility of 1 crore rupees and Islamic Bank is willing to offer this facility based on a Musharaka contract. Let's see how it works. Now the bank as I said earlier would make this 1 crore rupee amount available to the company A. It would put that amount into an account. And the bank has got this targeted profit of about 14% in mind. It could be anything 10%, 9%, 8% depending on the market. We are using 14%. So this 1 crore amount is now available to the company to draw down whenever it needs. It can draw down all 1 crore rupees or it can draw down a smaller amount depending on the need of this company. For example, if the company draws down 10 lakh rupees, 1 million rupees draw down for 30 days. Then for these 30 days as I said earlier, the company and the bank will be partners with the ratio of 99.99 and 0.01. In this case, there would be this thing 99.99 and 0.01. So this would be the partnership ratio of the bank and the company. Now if the company draws down on numerous occasions, for example on May 31, it draws down 1 million for 30 days. Fine. Next draw down is on 11th of May for 10 million for 20 days. June 5th it draws down 2 million for 10 days and so on. So this amount of money is available for the company for one year. Whenever it needs the money, it can draw down the money. So this draw down schedule happens to be like this for one year for this particular company A which has received an overdraft facility based on running Musharaka from an Islamic bank. Now these points, they are very important. So this structure, this product works on this point system. So when an amount of 1 million is drawn down for 30 days, the 1 million multiplied with 30, that would give rise to 30 million points. We call them 30 million rupees days. May the 11th and so on. The total points which belong to the bank according to this draw down schedule would be 615 million points for the whole year. The bank has got its own equity capital of 1 billion in the business anyway. And that money is there in the business for the whole year for 365 days. Hence the bank's points would be 365 billion rupees days. These points used to determine the investment shares of the company and the bank in the business during this one year. So according to this schedule, the company's share in the business during that one year on average would be 99.83%. And the bank's share would be 0.17%. So this is the investment share of the bank and the company during that one year on an average. We would continue with this one in our next module.