This paper attempts to examine issues in the current use of Ijara/leasing as an Islamic mode of financing based on the model agreements/documents used by Islamic banks for Ijara financing. The model agreements are selected as a fundamental source of information owing to the terms and conditions that define the basis of relationship between the bank as lessor and the customer as lessee. Precisely, the practical application of Ijara/leasing is based on these agreements. Primarily a qualitative research, exploratory in nature, was undertaken to explore the application of Ijara by Islamic banks in Pakistan. Data were collected in form of model agreements/documents from the website of State Bank of Pakistan (SBP) and two Islamic banks. Qualitative content analysis was applied to analyze the model agreements using an inductive approach in order to identify problems/issues in the use of Ijara by Islamic banks. Six major problems/discrepancies (issues) were identified in the current use of Ijara. However, these issues have been highlighted for more clarification through further research that may obtain more knowledgeable opinion of Shari’ah scholars regarding these problems (issues) in the application of Ijara. Keywords: Ijara, Islamic Banks, Agreements, Lessor, Lessee.