Leasing Association of Pakistan was established as an Association of Persons (AOP).

The Association was granted Licence No.139 under section 3 of the Trade Organisations Ordinance, 1961 by Ministry of Commerce, Government of Pakistan on 28th March 1995 and thereafter granted Certificate of Incorporation under section 32 & 42 of the Companies Ordinance, 1984 by SECP with effect from 22nd June 1995.

Leasing in the organized sector started in mid Eighties and the first leasing company was established in 1985. Prior to eighties the concept of hire purchase was the only mode of installment sales, which was, rarely used.

Real growth in the leasing sector took place in the nineties. Leasing is now offered as a mode of financing not only by leasing companies but also by modarabas, investment banks and investment finance companies. Lately commercial banks have also entered in leasing business.

Leasing sector has pioneered the concept of financing of consumer durables and automobiles and is also a major provider dfdf df dfof financiarel services to SMEs. The sector is playing a vital role in the development of the country’s economy with financing of SMEs, which is also in line with the Government policy of developing the Micro & Small Enterprises sector. Leasing sector has a competitive edge over commercial banks inspite of availability of low cost funds to them and better infrastructure. This edge is gained through quality of service, proactive management teams and identifying new market niches.