Moving a Pakistani Distributor Off Interest-Based Financing

A distributor in Pakistan was financing working capital through conventional interest-based loans and wanted to move to Sharia-compliant financing instead. We structured and advised on the shift to a profit-sharing contribution model, working through how the business’s short-term financing needs would be met without the interest-based structure, and without disrupting how the business actually operated day to day.

This wasn’t just a financing swap. It required rethinking how the business’s cash flow and reporting would work under a profit-sharing arrangement instead of a fixed-interest one.

Outcome: The distributor now finances working capital through a profit-sharing structure instead of interest-based loans, meeting their Sharia-compliance requirement without losing the flexibility conventional financing gave them.