NBFI & MODARABA SECTOR NEEDS TO EXPAND ITS ROLE AS IT POSSESSES ENORMOUS UNTAPPED POTENTIAL

NBFI & Modarabas are essential components of Pakistan’s financial services segment and play a critical role in supporting the growth of the economy. The sector possesses untapped potential and there is a dire need to expand its role by taking on a broader and a wider risk that banks are unable to do. This was stated by Mr. Aamir Khan, Chairman, SECP, while unveiling the Year Book -2020 of NBFI & Modaraba Association in a ceremony through zoom video link held on 29 june 2021. The ceremony also included the announcement of Best Performance Awards to the top performer of the non-Banking and Modaraba Sector.

The ceremony was presided over by Mr. Aamir Khan, Chairman, SECP and also attended by Mr. Farrukh H. Sabzwari, Commissioner, Ms. Khalida Habib, Executive Director, Ms. Bushra Aslam, Registrar Modaraba, Ms. Musarat Jabeen, Executive Director and other senior members of the SECP. Chief Executives of Modarabas, Leasing Companies Investment Finance Services, Shariah Advisors and senior officials from other financial entities also participated. The year Book was presented to the Chief Guest by Ms. Musarat Jabeen, Executive Director, SECP on behalf of the Association as the ceremony was arranged on zoom video link.



While congratulating the Association on launching of the Year Book 2020 Mr. Khan said that it is a pleasure for him to note that the Association has continued with the important venture of publishing this book on regular basis despite the constraints it faces due to the ongoing pandemic.

He further stressed that the association needs to pay attention to such areas as technical advancement, innovation, product diversification, capacity building and adopting even higher governance standards.

Earlier Mr. Basheer A. Chowdry, Chairman, NBFI & Modaraba Association of Pakistan highlighted salient features of the performance of Modaraba and Leasing Sectors during the year. He said that in spite of facing numerous challenges such as limited resource mobilization, lack of level playing field, liquidity problem, Sales tax & Federal Excise issues, etc. the entire NBFI & Modaraba Sector has distributed an amount of Rs.1,673 million as cash/stock dividend to the shareholders which proves resilience and potential of the sector.

Mr. Chowdry highlighted that currently both the Non-Banking and Modaraba sectors are facing taxation issues which continue to impact the business of our members. The foremost issue is the withdrawal of Clause 100 of Second Schedule of Income Tax Ordinance, 2001 meant for exemption for Modarabas.

He further said that the Association always encourages the performance of its members by giving “Best Performance Awards” to the top achievers Mr. Muhammad Samiullah Secretary General highlighted the salient features of the performance award criteria on the basis of which the awards are determined every year. Based on 30th June, 2030 results, ORIX Leasing Pakistan Limited secured first position while First Habib Modaraba secured Second position. The third position award for the year was given to ORIX Modaraba.



In conclusion Mr. Basheer A. Chowdry, Chairman, NBFI & Modaraba Association offered thanks to the Chief Guest Mr. Aamir Khan and his team for their continued support and guidance to the Sector He also expressed his sincere thanks to the members of the NBFI & Modaraba sector for their valuable assistance to the Executive Committee for discharging their responsibilities.