Interim Finance Minister Dr. Shamshad Akhtar has expressed her strong support for the Securities & Exchange Commission of Pakistan’s (SECP) initiatives aimed at establishing financial institutions backed by private funds to promote economic revival.
During a meeting held by the SECP to discuss proposals for establishing such financial institutions, Minister Akhtar urged fiscal and regulatory bodies, including the Federal Board of Revenue (FBR), the State Bank of Pakistan (SBP), and the SECP, to provide complete support to these initiatives. She emphasized the importance of attracting investments from local financial institutions, institutional investors, government DFIs (Development Finance Institutions), and corporate entities capable of attracting foreign capital.
Minister Akhtar also highlighted the need to attract international institutional investors with a focus on climate and environmental, social, and governance (ESG) factors. She stressed the urgency of implementing these initiatives to signal Pakistan’s readiness for business and economic growth to the global market and foreign investors.
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The meeting included leaders from commercial banks and DFIs. SECP Chairman Akif Saeed welcomed the participants, while Commissioner Mujtaba Ahmad Lodhi discussed SECP’s commitment to creating a favorable regulatory environment and its active engagement with banks and DFIs.
During the meeting, various proposals were presented, including the establishment of a Climate Resilience (CR) Fund under SECP Private Fund Regulations, 2015 by Habib Bank Limited on behalf of a consortium of banks. Additionally, DFIs proposed the creation of a similar fund backed by DFIs, and Bank Alfalah presented a proposal to create a Special Purpose Vehicle (SPV) under the Asset-Backed Securitization Regulations, 2022, for securitizing rupee-denominated debt into dollar denomination.
SECP Chairman Saeed highlighted that the regulatory requirements for structuring a Private Fund ensure professional fund management teams oversee fund management independently of financial institutions, bringing expertise in private equity, structured finance, and green investments. He also noted that the asset securitization proposal could open up new avenues in Pakistan’s Debt Capital Markets, benefiting all stakeholders.
The meeting concluded with a commitment from all participants, including banks and DFIs, to collaborate for the greater good of Pakistan’s economy.
