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HBL Istisna Financing

Istisna is a contract of sale of specified items to be manufactured or constructed, with an obligation on the part of the manufacturer or builder (contractor) to deliver them to the Customer upon completion. Istisna is the second exception to the rules of sale where a sale is allowed without immediate delivery of the goods sold. It relates to the goods that require manufacturing or construction.

It is necessary for the validity of Istisna that the price is fixed with the consent of the parties and that the necessary specification of the required items is fully agreed between them. The Istisna price can either be paid in advance, or in installments or at the time of delivery of goods.

Istisna can be used for financing facility for:

  • Manufacturing
  • Construction

Istisna can be utilized to facilitate payment of wages, overheads etc. in addition to the raw material. Hence, it provides more flexibility and wide range of application for the benefit of the customer to finance overheads, which may constitute a substantial portion of the production cost. It is also to be clarified that amount paid out as Istisna price to the manufacturer can be used by the manufacturer for any business related activity.


Istisna shall be used for:

  • Manufacturing of machines, plants, equipments and goods for sale in local and international market.

Eligibility Criteria

To Corporate/SME customers engaged in manufacturing for local and/or for export of goods. These businesses should have a satisfactory and proven track record, good reputation, financial standing and a business line not in conflict with Shariah and/or any regulatory injunctions, as decided by the Bank’s RSBM/Shariah Board.