The Religious Board constituted by the federal government for the SECP under Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, has given a green signal to two new modarabas, Habib Metro Modaraba and Orient Rental Modaraba that are expected to lead to an injection of Rs 800m in the capital market.The board has certified them of being Shariah compliant and in accordance with the injunctions of Islam. The meeting was headed by former Justice Khalil-ur-Rehman Khan, Chairman of the Board.
Habib Metropolitan Modaraba Management Company (Pvt) Limited is planning to float a new modaraba with paid-up modaraba funds of Rs 300 million. It shall be a perpetual, multipurpose and financial services modaraba. It will primarily provide car-financing solutions to various individuals and corporate customers based on RV car financing model. In the RV car financing, the monthly rentals are significantly lower than the regular Ijarah financing mode. In addition to RV car financing, it will provide solar power solutions to its customers based on Ijarah/Rental/ Musharakah or any other approved modes of financing.
Orient Rental Modaraba will be floated by EMAN Management (Pvt) Limited, with the authorised and paid-up modaraba funds of Rs 500 million. It shall also be a perpetual and multipurpose modaraba, primarily focusing on rental business of generators, heavy machinery etc.
These modarabas shall remain free of  Riba-based transactions.
The modaraba certificates of both the companies will be listed on the Pakistan Stock Exchange (PSX).It is expected that these modarabas will promote the modaraba sector and attract the public to invest in Islamic financial institutions. The SECP’s approval firmly reiterates its resolve to promote Islamic finance in the country.
