DAIMG’s comments on Afghan Bank’s Participation in Infrastructure Funding

DAIMG’s comments on Afghan Bank’s Participation in Infrastructure Funding Participation of international financial institutions should be avoided as all existing international financial institutions are imperialist funded, linked to global riba and gharar based money and capital market. Foreign investment funding of infrastructural projects should be sought from friendly countries. However it should take the form of direct foreign investment (DFI) (preferably on the basis of Build-Operate-Transfer (BOT) contracts). Foreign loan financing should be avoided because (a) it is likely to be riba/gharar based (b) it would lead to Afghanistan’s public international indebtedness entrapping the national economy within the web of global imperialist finance. On Sukuk please see DAIMG’s earlier suggestions. Details of syndicate financing should be specified and care should be taken to avoid those conventional Islamic banking provisions and procedures which replicate riba based contracts. DAIMG stands ready to comment on proposed syndicate financing forms. DAIMG strongly supports participatory financing by commercial banks of infrastructural projects provided they are on mudarba or musharka basis. Involvement of national commercial banks in development (infrastructure and other) is a very good idea. DAIMG strongly supports this proposal. DA AFGHAN IQTISAD MASHWARTI GROUP