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.
