COTABATO CITY—Bangsamoro Pilgrimage Authority (BPA) is exploring the establishment of Islamic endowment fund as a sustainable financing mechanism for Hajj-related programs and services in the region.
As part of the initiative, the BPA conducted a three-day benchmarking activity from Aug. 18 to 20, engaging with the Al-Amanah Islamic Investment Bank of the Philippines (AAIIBP), the Philippine Ulama Congress, and the National Commission on Muslim Filipinos (NCMF) to examine the Islamic finance, legal, regulatory, and institutional frameworks needed to establish and govern such a fund.
Building a sustainable Hajj financing mechanism
An Islamic endowment fund or “waqf”, in which money or property, is dedicated to a specific religious or charitable purpose with its benefits used in accordance with the intention of the endower. The proposed waqf fund is being studied as a sustainable way to support pilgrimage initiatives.
The BPA held discussions with the AAIIBP to look into the Islamic finance practices relevant to the management and governance of the proposed fund.
The two institutions also explored possible areas of cooperation, including future Shari’ah-compliant financial offerings such as Hajj and Umrah savings accounts and Zakat collection services to make pilgrimage planning and the fulfillment of religious obligations more accessible and secure.
“We look forward to building stronger institutions and financial solutions that respond to the needs of Muslim Filipinos,” AAIIBP Chairperson and Chief Executive Officer Amenah Pangandaman said.
Meanwhile, the meeting with NCMF highlighted the necessity of a clear legal framework and robust safeguards for the waqf fund.
“Discussions with NCMF emphasized the need for a clear legal basis and safeguards for managing resources under the fund, including proper oversight, accountability, and compliance with applicable government requirements,” the BPA said in a Facebook post.
Under Republic Act No. 11054, or the Bangsamoro Organic Law (BOL), the Bangsamoro Government exercises authority over Hajj and Umrah matters involving pilgrims from within the region.
The BPA, as the region’s pilgrimage authority, is tasked with administering and supervising pilgrimage-related programs and services for Bangsamoro pilgrims.
The benchmarking mission will refine the proposed waqf fund’s legal and institutional framework and identify key local and national agencies for consultation, while the fund is still under policy and legislative review. (Settie Jehana Baunto/BIO with reports from BPA)
