Minimum Rate of Profit
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Definition of "Minimum Rate of Profit"
Relating to musharakah financing by bankers in Pakistan, it is the rate below which no financing is provided by the banks, arrived at in the following manner: (i) Averaged-out rate of profit paid on PLS saving accounts by various banks; (ii) Rate of service charges determined by the State Bank of Pakistan. Total of (i) and (ii) above would be the minimum rate of profit.