Islamic Finance Centre disburses Rs14 million in two months

ISLAMABAD -  The recently established Islamic Finance Centre has disbursed Rs14 million among common people in first two months under Ijarah mode of Islamic financing for purchase of motorcycles and other products.

The Islamic financing facility center was inaugurated by SECP Chairman Zafar Hijazi in Rawalpindi on December 2016. The initiative was taken by the Modaraba sector on the patronage of the SECP chairman for providing Islamic financial products to the masses. Initially four modarabas, Allied Rental Modaraba, First Habib Modaraba, Orix Modaraba and Trust Modaraba has opened their offices in the this Islamic Finance Centre.

The establishment of Modaraba-based Islamic Finance Centre was initiated to promote legal modes of financing and to curb the illegal and unlicensed informal lending practices throughout the country.

The Islamic Finance Centre received overwhelming response and common people are approaching the centre to avail Islamic finance for purchase of motorcycles to cater their conveyance needs. The Modarabas in this centre are providing microfinance to the customers at cheaper rate ranging in between 20 to 25 percent, as against the prevalent market rates of 40 to 45 percent.

The SECP has shown its firm commitment to provide all the support to other Modarabas, which have plans to open similar centres in other parts of the country for the benefits of the common people.

This will increase the outreach of Modarabas to the smaller cities and towns for greater financial inclusion of the underserved sectors.

Published in The Nation, February 25th, 2017