Dr Imran Usmani, Shariah Advisor and Group Head of the Product Development & Shariah Compliance Department, Meezan Bank Limited lauded the efforts of the Modarabas for strict adherence to Shariah compliance standards. This was stated while addressing the participants of two-day workshop on "Islamic Finance" organised by NBFI and Modaraba Association of Pakistan from May 15.
He was pleased with the strides made by the sector on better governance, product development and appointment of Shariah Advisor by every Modaraba to ensure day one compliance to Shariah Standards and rulings. He noted with satisfaction the issuance of Annual Shariah Compliance Reports by Modarabas' Shariah Advisors as part of Modaraba's Annual Financial Statements to develop public confidence on the Modarabas. He advised the Modarabas to standardise their agreements in line with the Islamic banks. He further stated that efforts should be made to promote Musharaka and Modaraba based products for generating funds for the sector. Dr lmran was hopeful that with better image building, Islamic Banking sector would develop a positive view of the sector for enhancement of their credit lines and parking their excess liquidity.
Dr Imran felt happy that the sector is making its contribution for the promotion of Islamic finance and Islamic financial products in the country and congratulated the organisers for holding the workshop. Shahid Nasim, Executive Director, Supervision Department, SECP, while speaking on the occasion, highlighted the efforts made by the Modarabas to develop Islamic business practices in the country. Though compared to Islamic Banking sector, the Modarabas have lagged behind in terms of growth, but with better governance, adherence to Shariah Standards and better risk management practices, he sees a bright future for the sector in coming years. Muhammad Asif Paryani, Deputy Director, SECP, in his presentation, highlighted the roles, responsibilities and duties of the Shariah Compliance mechanism implemented in 2012. Farhanul Haq Usmani, Vice President, Shariah Audit & Financial Advisory, Meezan Bank Ltd discussed the important features of Shariah screening criteria for the KMI 30 Index.-PR