Modarabas in Pakistan to post Higher Growth in 2007: MAP
Pakistan Times Business & Commerce Desk

LAHORE: Modarabas, the Sharia-compliant fund management companies, are expected to post higher growth during the current year, according to annual report of Modaraba Association of Pakistan (MAP), 2006.

Development of Islamic banking sector during the year 2006, is a very significant phenomenon which would enlarge the scope and potential of Sharia-compliant financial activities in the country.

The report said that Modarabas will be benefitting directly from the product development, public awareness of Islamic finances and emergence of Islamic money market spearheaded by the Islamic banks.

About the growth of modarabas in the year 2006, the document stated that religious board had approved the establishment of six modarabas- First Treet Manufacturing Modaraba, Allied Rental Modaraba, Modaraba Al-Makatab, Modaraba Al-Tameer, Modaraba Al-Souq and Total Modaraba.

Of these, two Modarabas- First Treet Manufacturing modaraba and Allied Rental Modaraba had been floated with a paid-up capital of Rs 142.8 million and Rs 300 million respectively.

The report said that a number of mergers and acquisitions were made in the Modaraba sector during the year 2006.●