Historical Perspective
The laws governing Modarabas were introduced in Pakistan in 1980
as one of the first steps taken by the Government towards
establishing a financial system in coherence with the
injunctions of Islam.
The formation of a Modaraba is done under an arrangement
made between two parties: one provides the capital (rabb-ul-maal),
and the other party, called the mudarib, contributes through
its skills. A Modaraba can undertake virtually any business
activity that is not repugnant to Shariah, the Islamic Laws.
Moreover, a Modaraba may be either a multipurpose or a
specific purpose Modaraba, and can be formed for either a
fixed or an indefinite period. Capital is raised from the
public in the form of Modaraba Certificates, which are
similar to shares of any company.
BankIslami Modaraba Investments Limited (BIMIL)
Management Company of Modaraba Al-Mali
In 1987, Modaraba Al-Mali was established by a group of
experienced bankers and businessmen as one of the pioneering
Modarabas to undertake leasing, Morabaha and Musharika
business on the principles of Islamic financing. Since its
inception it has managed to establish itself as one of the
most successful and diversified growth oriented non banking
financial institution of the country with substantial
portion of the Ijarah & Morabaha pertaining to small and
medium ticket assets which are of the nature of ancillary
asset items to increase production capacity and to enable
lessees to conduct the business at higher levels of
efficiency.
In August 2007, BankIslami Pakistan Limited acquired 100
percent shareholding of JS Finance Ltd (The Management
Company of Modaraba) and has renamed it BankIslami Modaraba
Investment Limited (BIMIL). Since the change of ownership,
the Board of Directors has decided to concentrate Modaraba
Al-Mali on mercantile, trading and services activities.
