Mudharabah: Halal ya Haram? - Is it permissible?

Dr. Israr Ahmad discusses the permissibility of *Mudharabah* (profit-sharing) in Islam, focusing on the imbalance of risk and reward. He argues that if the investor bears all the loss while the worker receives profit without commensurate effort, it borders on being undesirable. He contrasts this with *Qard-e-Hasana* (benevolent loan), where the lender shares in the reward or forgives the debt altogether, as a preferable Islamic financial practice. The speaker references verses from Surah Al-Baqarah advocating forgiveness as a superior act. He advises against a system where one party profits without bearing the risk, and encourages charitable lending instead.

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