Modaraba, a form of Islamic asset management almost unique to Pakistan, is a small but potentially important part of every Pakistani Islamic HNW investor's toolkit. Securities and Exchange Commission of Pakistan is revamping its rules in this area.

In Pakistan the process of Islamising the economy began in 1980 when the Government introduced the concept of Modaraba into the banking sector by promulgating the Modaraba Companies & Modaraba (Floatation & Control) Ordinance 1980 and the Modaraba Companies and Modarabas Rues 1981. Among other activities, the law provides that a Modaraba can trade in halal commodities and act as a special purpose vehicle and a venture capital company.

More recently, the SECP reviewed Pakistan's 28 Modarabas and found them wanting. It suspects that 13 of them have shaky finances. The result is a draft of amendments to the rules of 1981, issued in exercise of the powers granted to the SECP in s41(2) of the ordinance of 1980.