The Country Report on NBFI and Modaraba sector prepared by IBA-CEIF, in collaboration with NBFI and Modaraba Association, was launched at the IBA City Campus. Chairman NBFI and Modaraba Association, Mr. Basheer A. Chowdry, presented the report to Executive Director IBA, Dr. S. Akbar Zaidi.
Advisor to PM on Institutional Reforms & Austerity, Dr. Ishrat Husain was the Chief guest of the event and he suggested a number of measures to be taken by the NBFI & Modaraba Sector for its development and growth. He congratulated the authors and people who worked hard to produce such a fine report on the sector. He said that introduction of Fintech in the country would disrupt primacy of both the banking and non-banking sector to reposition themselves. He also mentioned that SME lending of the banks has reached from 17% to 7% which is very disturbing for the development of the SME Sector.
Mr. Chowdry said that the report included various aspects of the non-banking and Modaraba sector encompassing its evolution, growth, structure, performance, shariah compliance and regulatory framework and provide a comprehensive coverage of the sector. He highlighted the performance and contribution of the sector and said that the sector has distributed significant amount to its shareholders/certificate holders in the shape of cash dividend. He also highlighted the various measures taken by the Association for the awareness, growth and image building of the Sector.
Dr. S. Akbar Zaidi also addressed the participants and appreciated the coordination between IBA-CEIF and NBFI and Modaraba Association of Pakistan and hoped that in future a series of such type of reports would also be brought for the awareness of the sector.
Also present at the ceremony, Commissioner SECP, Mr. Farrukh H. Sabzwari said that the SECP had recommended various amendments in the Modaraba Ordinance, 1980 including Introduction of unlisted Modaraba, powers to the Certificate holders and giving voting rights, consolidation of weak leasing companies and Modarabas. He pointed out that Institute of Financial Markets in Pakistan (IFMP) has been reshaped and new CEO has been appointed to accelerate the activities including holding of awareness session in collaboration with other financial institutions.