ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) Chairman Zafar Hijazi has inaugurated an Islamic financing facility centre in Rawalpindi.
The center would help the common people to avail themselves of affordable financing on Islamic sharia principles to buy motorcycles and other products in due course of time. The centre will be operated initially by four modarabas, i.e., Allied Rental Modaraba, First Habib Modaraba, Orix Modaraba and Trust Modaraba.
They will provide micro-financing to the customers at cheaper rate ranging between 20 to 25%, as against the prevalent market rates of 40 to 45%.
Speaking on the occasion, Zafar Hijazi said that a nationwide survey was conducted by the SECP, and it was found that illegal and unlicensed informal lending practices were being undertaken throughout the country at exorbitant rates by certain practitioners. Also such activity was not being recorded or reported to any regulator or agency, he added.
He said that no entity can undertake the business of micro-financing without getting license from the SECP. Realizing the situation and to discourage the informal sector, the SECP advised the modaraba sector to setup a consumer financing centre in Rawalpindi to provide the public at large to avail consumer finance in a regulated form at affordable rates. Hijazi, said that SECP will not allow such unlicensed activity and action will be taken against those elements fleecing the people. Congratulating the modaraba sector on opening the centre in Rawalpindi, Zafar Hijazi advised it to setup such centres in other areas of the country where people can have easy access to get financing facility at affordable rates.
The CEO of Trust modaraba Basheer A. Chowdry said that the Rawalpindi Islamic financing facility will be run through reputable Qazi Trading Company, which will be providing motorcycles to the applicants fulfilling the necessary requirement and later modarabas will be providing loan facility for other market products also.
