Modarabas are Shariah Compliant: Dr. Imran Usmani
Karachi, May 21, 2014 (PPI-OT): Dr. lmran Usmani, Shariah Advisor and Group Head of the Product Development and Shariah Compliance Department, Meezan Bank Limited lauded the efforts of the Modarabas for strict adherence to Shariah compliance standards. This was stated while addressing the participants of two days workshop on “Islamic Finance” organized by NBFI and Modaraba Association of Pakistan on 15- 16th May, 2014.
He was pleased with the strides made by the sector on better governance, product development and appointment of Shariah Advisor by every Modaraba to ensure day one compliance to Shariah Standards and rulings.
He noted with satisfaction the issuance of Annual Shariah Compliance Reports by Modarabas’ Shariah Advisors as part of Modaraba’s Annual Financial Statements to develop public confidence on the Modarabas. He advised the Modarabas to standardize their agreements in line with the Islamic banks.
He further stated that efforts should be made to promote Musharaka and Modaraba based products for generating funds for the sector. Dr. lmran was hopeful that with better image building, Islamic Banking sector will develop a positive view of the sector for enhancement of their credit lines and parking their excess liquidity.
Dr. Imran felt happy that the sector is making its contribution for the promotion of Islamic finance and Islamic financial products in the country and congratulated the organizers for holding the workshop. Mr. Shahid Nasim, Executive Director, Supervision Department, SECP while speaking on the occasion, highlighted the efforts made by the Modarabas to develop Islamic business practices in the country.
Though compared to Islamic Banking sector, the Modarabas have lagged behind in terms of growth, but with better governance, adherence to Shariah Standards and better risk management practices, he sees a bright future for the sector in coming years.
Mr. Muhammad Ash Paryani, Deputy Director, SECP, in his presentation, highlighted the roles, responsibilities and duties of the Shariah Compliance mechanism implemented in 2012. Mr. Farhan ul Haq Usmani, Vice President, Shariah Audit and Financial Advisory, Meezan Bank Limited discussed the important features of Shariah screening criteria for the KMI 30 Index.
Mr. Murtaza Ahmed Ali, Chairman, NBFI and Modaraba Association of Pakistan, while speaking on the occasion mentioned that Modaraba business model is one of its kind in the whole Islamic World. It was the pioneering institution established for the development and promotion of Islamic business practices in the country.
It has proper regulatory mechanism with a complete set of prudential regulations in force for governance and compliance to best business practices. He highlighted the efforts made by the sector for the promotion of Islamic finance and informed the participants that it has 12 approved Islamic modes of financing products approved by the Religious Board.
Mr. Murtaza informed that a Sub Committee on Modarabas has been formed by the Steering Committee set up by the Honourable Finance Minister comprising of representatives of Ministry of Finance, SBP and SECP for the promotion and growth of Islamic Finance.
The Committee on Modarabas is finalizing its recommendations for improvement in the regulatory regime applicable for the Modarabas and steps required to be taken for further promotion of Modarabas in the country, especially with reference to better coordination and support with Islamic Banking sector.
He thanked Dr. lmran Usmani for gracing the occasion by taking time out from his busy schedule. He also agreed with the suggestion of Mr. Shahid Nasim and his team of to make such programs a regular feature of Association for the training and capacity building of Shariah knowledge and expertise of the Modaribs, managing the affairs of the Modaraba.
Concluding the workshop, Mr. Muhammad Samiullah, Secretary General, NBFI and Modaraba Association of Pakistan thanked the speakers including Mufti Irshad Ahmed Aijaz, Multi Muhammad Najeeb Khan, Multi Abdul Sattar Laghari and Multi Muhammad Ibrahim Essa, who provided an indepth knowledge to the participants about the concept of Islamic finance and product knowledge of various products used by the Modarabas.
Mr. Murtaza Ahmed Ali presented the memento of the Association to Dr. lmran Usmani and Mr. Shahid Nasim. The program ended with distribution of certificates to the participants of the workshop by Dr. Imran Usmani.
For more information, contact:
Mr. Muhammad Samiullah
NBFI and Modaraba Association of Pakistan
602, Progressive Centre, 30-A,
Block-6, P.E.C.H.S., Shahrah-e-Faisal,
Tel: +92-21-34389774, 34322440