Zafar Abdullah, Commissioner, SECP, inaugurated a new Islamic Finance Center for the promotion of Islamic investments at the Abbottabad Sarmayakari Markaz on Thursday. As envisioned by the SECP Chairman, this is an initiative of the NBFI and Modaraba Association to expand the reach of regulated Islamic investments.
The SECP is committed to promoting modarabas as pure Islamic financial institutions. In consultation with stakeholders, the SECP has already reviewed the entire regulatory framework for modarabas and has approved the concept paper for structural reforms to implement the concept of modaraba in its true Islamic spirit, said Zafar Abdullah.
He highlighted the fact that to provide a substitute for exploitative financing in the informal sector, the SECP Chairman had advised the modaraba sector to set up a consumer-financing center in Rawalpindi to provide consumer finance to the public in a regulated form at affordable rates. The modaraba sector responded overwhelmingly, and four modarabas established the first Islamic Finance Center in Rawalpindi to provide Islamic finance to low-income customers for the purchase of motorcycles. Until February 28, 2017, the center had disbursed Rs 14.97 million to 249 clients.
Speaking on the occasion, Ayaz Dawood, Chairman, NBFIs and Modaraba Association, informed the audience that initially, the center would focus on providing investor education and awareness about the NBFIs and the modaraba sector, expanding outreach of the association's members to the public in Abbottabad and its adjoining areas. Later, the center will provide the public affordable Sharia-compliant financing.
He appreciated the vision of Zafar Hijazi, the SECP Chairman, who wants to extend the outreach of modarabas and broaden the range of Islamic financial products. Basheer A. Chowdry, and Muhammad Shoaib Ibrahim also spoke on the occasion. Senior officials of SECP, CEOs of Modaraba companies and officials of various financial institutions attended the inauguration ceremony. -PR
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