The Securities and Exchange of Commission of Pakistan (SECP) chairman, Zafar Hijazi will inaugurate on Thursday, the first Islamic financing facility centre in Rawalpindi set up by the Modaraba sector. First Habib Modaraba, Orix Modaraba, Allied Rental Modaraba and Trust Modaraba have completed the arrangements to open an Islamic financing facility centre in Rawalpindi.
The centre which is the first of its kind will facilitate the public and small customers to obtain Islamic financing facilities to buy motorcycles, on cheaper terms than those offered by the informal sector. 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. The centre is the first of its kind and will be followed by similar facilities to be established in other locations. The participants of the arrangement have included all modalities.
Initially four Modarabas are participating in the arrangement and more members are likely to join to expand the scope. 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. In due course other outlets will also be included. At present, 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.-PR