Modarbas advised to increase outreach

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) Chairman Zafar Hijazi on Tuesday advised Modarba Association of Pakistan to increase its outreach to the smaller cities and towns in the country for financial inclusion.   

Hijazi also asked them to play its role in replacing the informal lending sector, “which is exploiting destitute customers by charging exorbitant interest rates.”  The Securities and Exchange Commission of Pakistan chief, taking to the representatives of the non-bank financial institutions, called for innovative Sharia-compliant services and products.    

The association appreciated the improvements in the compliance and risk management framework introduced by the Securities and Exchange Commission of Pakistan through the proposed amendments to enhance the effectiveness and creditability of the sector.

The representatives of the association discussed the diversity and potential of the modaraba’s concept in exploring the current and forthcoming business opportunities in the context of overall economic development of the country and the role this sector can play with particular reference to the China-Pakistan Economic Corridor.

The chairman invited proposals for the resource mobilisation and product innovation. The representatives said the industry players will actively work on the guidelines and participate in increasing their outreach, initially in the Abbottabad capital market hub and afterwards in Rawalpindi and other locations in the country.