By Hamid Mahmood ISLAMABAD, April 11 (INP-WealthPK): In first, the Securities and Exchange Commission of Pakistan (SECP) has approved the launch of clean energy projects under the modaraba mechanism. After an assessment of the project under the Modaraba Ordinance 1980, the Religious Board of SECP approved the initiative, reports WealthPK. Aamer Chishti, Director of Burj Energy International Management (BEIM), which will undertake the green energy projects after the regulator’s approval, has said this will be Pakistan's first attempt at boosting renewable energy projection under modaraba. He said the company would invest in solar and wind projects in order to reduce the country's carbon footprint, according to WealthPK. Modarabas were Pakistan's first Islamic corporation model introduced in the 1980s with a legal structure and certain regulations. They were a unique sort of partnership, in which assets are managed on behalf of consumers, with revenue and expenditures split according to a predetermined ratio. As a result, they're regarded as one of the purest types of Islamic finance. According to the stock market listing regulations, BEIM must be listed on the Pakistan Stock Exchange within 12 months of its approval from SECP, and its three million modaraba certificates, which represent 30% of the company's total paid investors, must be offered for public selling. Following the public sale, the modaraba firm will use the funds to invest in areas such as compliance with alternative energy projects, energy transmission, and leasing of alternative energy facilities, equipment and projects. BEIM has a lot of expertise with project compliance, operation and supply in the alternative energy industry. It is to mention here that BEIM has already completed a $1-million 50MW wind energy facility in Jhampir area of Thatta district in Sindh. According to the SECP, the launch of modaraba initiative has drawn attention of other energy sector partners to generate money for launching green energy projects under the Islamic financing mode. In Asia, the firm has launched 52 renewable energy projects, which has enabled it to avoid 86,880 tonnes of carbon emissions. It has joint ventures in Bangladesh and Malaysia and is intending to start operations in Sri Lanka as well, according to WealthPK. According to a 2020 study report by Pakistan Credit Rating Agency, Pakistan has 28 modarabas with an asset base of around Rs50 billion. The launch of renewable energy projects under the modaraba mode is intended to inspire firms to use the capital market to generate funds and further expand Islamic financial institutions in the country. The BEIM plans to engage in a number of solar and wind energy projects in Pakistan to produce clean energy for the industrial sector, small and medium enterprises and residential areas. This will enable industrial and household customers to save a lot of money by switching over to solar and wind energy. It will also help Pakistan achieve its objective of reducing carbon footprint and meet the net-zero commitments made to the international community. Despite having abundant renewable energy resources and significant growth potential, Pakistan has struggled to raise the necessary funds for launching green energy projects. In this respect, Chinese firms, which are looking for better joint venture possibilities throughout the world, can help Pakistan adapt to green energy in the coming years. Cooperation in green energy projects will lead to a win-win situation for both China and Pakistan, which will go a long way in boosting regional socioeconomic integration.