ISLAMABAD: The first Islamic financing facility centre, inaugurated by Chairman, Security Exchange Commission of Pakistan (SECP) Zafar Hijazi, was set up by the modaraba sector in Rawalpindi.
The centre will aid the small customers to obtain Islamic financing facilities to buy motorcycles, on cheaper terms than those offered by the informal sector. The facility will be provided through sales network of the one the major motorcycles retailers M/S Qazi trading company to ensure immediate outreach to the potential buyers.
The initiative has been taken by the modaraba sector on the patronage of the Securities and Exchange of Commission of Pakistan to promote Islamic financing services and products and to bring them to the easy reach of common man.
The centre will contribute promotion of Islamic finance and improve modaraba sector’s outreach to unexplored areas and its clientele.
‘Modaraba’ is the Islamic principle involving an agreement between two parties to earn profit on investment. This initiative will be followed by similar facilities to be established in other locations.
Initially four modarabas are participating in the arrangement and more members are likely to join to expand the scope.
At present, extremely limited financing is available to individual borrowers from the financial sector and therefore, those buyers who need to supplement their own cash resources through short term borrowing have no choice but to accept exorbitant terms.
