Istisna’ is a sale transaction where a commodity is transacted before it comes into existence. It is an order to a manufacturer to manufacture a specific commodity for the purchaser. The manufacturer uses his own material to manufacture the required goods. In Istisna’ , price m ust be fixed with consent of all parties involved. All other necessary specifications of the commodity must also be fully settled. Istinsa' as a mode of financing Istisna’ may be used to provide financing for construction of house. If the client owns a land and seeks financing for the construction of a house, the financier may undertake to construct the house on the basis of an Istisna’. If the client does not own the land and wants to purchase that too, the financier can provide him with a constructed house on a specified piece of land. Istisna’ may also be used for similar projects like installation of an air conditioner plant in the client’s factory, building a bridge or a highway. The modern BOT (buy, operate and transfer) agreements may be formalized through an Istisna’ agreement as well. So, if the government wants to build a highway, it may enter into an Istisna’ contract with the builder. The price of Istisna’ can be the right of the builder to operate the highway and collect tolls for a specific period. Download Presentation