In a landmark decision to strengthen the Islamic finance sector and stimulate economic development, the Government of Sindh has approved a substantial Rs. 2 billion equity injection into Sindh Modaraba. This strategic capital infusion is aimed at enhancing the Modaraba’s financial capacity, expanding its Shariah-compliant financing products, and supporting small and medium enterprises (SMEs) and development projects across the province.
The equity injection will empower Sindh Modaraba to increase its financing portfolio for SMEs, agriculture, housing, and microfinance—key sectors identified for driving inclusive economic growth and poverty alleviation in Sindh. By bolstering its capital base, the Modaraba will be better positioned to offer larger, more flexible, and affordable Islamic financing solutions to entrepreneurs, farmers, and low-income households, aligning with the provincial government’s agenda of financial inclusion and socioeconomic empowerment.
This move highlights the Sindh government’s proactive role in leveraging Islamic financial institutions as vehicles for development finance and job creation. The investment is expected to enhance the Modaraba’s credibility, attract additional private sector investment, and foster a more vibrant Islamic finance ecosystem in Pakistan’s second-largest economy.
“The Rs. 2 billion equity injection into Sindh Modaraba reflects our commitment to building a robust, Shariah-based financial system that serves the real economy. This will enable the Modaraba to scale its operations, support SME growth, and contribute to provincial development goals in a sustainable and inclusive manner,” stated a senior official from the Sindh Finance Department.
The capital boost is also seen as a step toward deepening the modaraba sector’s role in Pakistan’s Islamic capital market, potentially paving the way for future sukuk issuances and public-private partnership (PPP) projects in Sindh.
