ISLAMABAD: The Islamic Finance Centre (IFC) disbursed finances worth Rs14 million in the first two months of its establishment.

Financing was made under the ijarah mode for the purchase of motorcycles and other products, becoming the first Islamic mode for selling goods in instalments.

IFC Rawalpindi was inaugurated by Securities and Exchange Commission of Pakistan (SECP) Chairman Zafar Hijazi in December. The IFC currently works with four motorcycle vendors in Rawalpindi who sell their goods on instalments.

The initiative was taken by the modaraba sector to provide Islamic financial products to the masses. Initially, four modarabas, namely Allied Rental Modaraba, First Habib Modaraba, Orix Modaraba and Trust Modaraba, have opened their offices in the IFC.

“This is a new idea by the SECP to promote legal modes of financing and curb the illegal and unlicensed informal lending practices throughout the country,” an official of the SECP said.

The IFC received an overwhelming response as people are approaching it to avail Islamic finance for the purchase of motorcycles.

Published in Dawn, February 25th, 2017