Security and Exchange Commission of Pakistan (SECP) will support proposals and innovative
ideas from modarabas and NBFIs for improving liquidity in this sector.
This was stated by the chairman SECP Muhammad Ali while speaking at the launching of Year Book of
NBFI and Modaraba Association of Pakistan for 2011 here Thursday.
He said that this sector is facing shortage of funds since 2008, due to reluctance of banking sector in
extending finances to modaraba and NBFIs.
"We are working in SECP to revive modaraba and NBFIs and we want to facilitate them and improve their
liquidity", he added.
He said modarabas have worked very well and SECP has also facilitated them. We have extended license
period from one to three years while they have been allowed to meet the minimum capital requirement limit
till June 2011. They are meeting the requirements, he noted.
SECP chairman said that NBFI and modarabas will soon get guidelines for provisioning and classification
requirements. Currently, this is 20 percent for first year, 50 for second year and 100 percent for third year
for next three years.
