Recently the SECP Religious Board of Modarabas has approved a number of financing agreements and products as being  Shariah complaint for utilization by the Modaraba Sector. The Modaraba Association of Pakistan (MAP) organized meetings of the Chief Executives of the Modarabas at Lahore and Karachi to share the details of  the recently approved agreements and module and to develop a comprehensive plan for their effective utilization.

Addressing the participants, Basheer A. Chowdry, former Chairman of MAP trace the efforts put in by the Association for updating and enlarging the scope of the Modarabas admissible contracts.

He said that the approval of twelve agreements and one resources module by the Religious Board is a historic event as
the previous agreements being used by the sector had been approved in early 90s.

The considerable research and development achieved in the Islamic financial activities over the last decade had been utilized for the development of the agreements approved by the Board last week.

He particularly appreciated the effort made by Muhammad Shoaib the current Chairman of the Association and other colleagues from the Modaraba sector for contributing their time knowledge and efforts for the
preparation of the agreements.

Both Shoaib and Chowdry acknowledged the valuable support, guidence and participation provided by the Securities and Exchange Commission of Pakistan (SECP) and particularly by Bilal Rasul, Registrar Modarabas and their  colleagues and achieving such a significant land mark and the evaluation of the modaraba sector.

The participants were also advised theguidelines provided by Justice Mian Mehboob Ahmed, Chairman of Religious Board for expansion diversification and innovation activities by the modarabas.

His emphasise on reaching out to the rural and smaller towns and provided financing
facilities to the small and medium clientele was also discussed.

The participants agreed that the Regulator and the Religious Board had provided all possible assistance to the sector for enhancement of its business and a level playing manner.

Muhammad Shoaib shared with the participants some key decisions made by the associations to maximize the understanding and utilization of the revised agreements and products.

The Association would arrange various workshops at Karachi and Lahore to be attended  by the Executives and Staff of the modarabas in which prominent Shariah scholars and experts would explain the essential ingredients, requirements and disciplines of the  approved agreements.

It was also decided to undertake proper marketing of these models with close liaisons with the Islamic Banks, Takaful Companiesand Islamic Mutual Funds.

It was resolved by the participants that the new era of development initiated with the approval of the agreements and models would be seriously and sincerely utilized to ensure that the Modaraba sector plays a  prominent role in the development of the Islamic financing systems In the country and abroad.

They agreed that the changed scenario of  business activities will also re-energize the financial strength of the modarabas and rebuild their image of being progressive and vibrant entities.