Modaraba certificate as an instrument for investment

Pakistani investors have several investment options. Some investors prefer to have guaranteed-return holdings, such as bonds, in their portfolios. Stocks are the most prominent of investments without such a guarantee. Pakistan's two stock exchanges are in Karachi and in Lahore. Investors examine many factors when deciding whether to buy a stock. The stock market's history helps one see how mudaraba certificates would perform. In 1985, stock exchanges began listing two general purpose and perpetual mudarabas. Since then, the number of mudarabas listed has reached over 30. The central bank helps control mudaraba operations. The appropriateness of the negative publicity mudaraba ventures received was questionable. Although it seems that mudarabas do not now appeal to foreign investors, things should change with the achievement of stability.