Daily Times

ISLAMABAD: Security Exchange Commission of Pakistan (SECP) Chairman Zafar Hijazi will inaugurate the first Islamic financing facility centre set up by the modaraba sector in Rawalpindi on Wednesday. First Habib Modaraba, Orix Modaraba, Allied Rental Modaraba and Trust Modaraba have completed the arrangements to open an Islamic financing facility centre. The centre, which is the first of its kind, would facilitate 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 SECP to promote Islamic financing services and products and to bring them to the easy reach of common man. The centre would contribute promotion of Islamic finance and improve modaraba sector’s outreach to unexplored areas and its clientele. The center would 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 would be provided through sales network of the one the major motorcycles retailers Qazi trading company to ensure immediate outreach to the potential buyers. In due course other outlets will also be included. At present, extremely limited financing was 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.