Leasing industry in Pakistan: Problems & prospects

Lease-financing activity in Pakistan was started in 1985 primarily as a result of Islamization of the economy. In addition to being one of the permissible Islamic modes of financing, lease financing also became popular as an alternate source of financing. With its distinct advantages over conventional sources of finance inclusive of tax advantage, efficient approval process, cash flow benefits, etc., lease financing has over the years become a major source of financing. The paper analyses the lease financing industry in Pakistan