A Religious Board, constituted by the government, is responsible for approving the prospectus of each Modaraba containing the types of business to be conducted, management, etc. While the Religious Board has a significant role, there is no requirement for Modarabas or their management companies to appoint Shariah advisers at individual fund level.
The result is familiar from many other countries today: a large current account deficit, a heavily indebted and uncompetitive economy and an overextended banking sector. Then, the Soviet economy collapsed at the start of the 1990s.