ISLAMABAD: Federal Minister for Finance, Revenue, and Economic Affairs Dr Shamshad Akhtar extended her unwavering support to Securities and Exchange Commission of Pakistan (SECP) initiative aimed at establishing financial institutions backed by private funds to serve as a catalyst for economic revival.
Dr Shamshad Akhtar asked the fiscal and regulatory side including the Federal Board of Revenue, State Bank of Pakistan, and the SECP to extend complete support to the initiatives of seeking investments from local financial institutions, institutional investors, government DFIs, and corporate entities with the potential to attract foreign capital.
She was chairing the meeting held by the SECP to discuss proposals for establishing financial institutions backed by private funds to serve as a catalyst for economic revival. The meeting brought together leaders from Commercial Banks and Development Finance Institutions (DFIs).
The minister suggested making efforts, particularly to attract climate and ESG-focused international institutional investors. 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.
SECP Chairman Akif Saeed welcomed participants at the meeting while Commissioner Mujtaba Ahmad Lodhi discussed SECP’s commitment to creating an enabling regulatory environment and its active engagement with banks and DFIs.
Habib Bank Limited, representing a consortium of banks, proposed the establishment of a Climate Resilience (CR) Fund under the SECP Private Fund Regulations 2015.
Khalida Habib, Executive Director Specialized Companies Division at SECP, on behalf of the DFIs, elaborated on the proposal for setting up a similar fund backed by DFIs.
Whereas, Bank AL Falah presented a promising proposal to create a Special Purpose Vehicle (SPV) under the Asset-Backed Securitization Regulations, 2022, to securitize rupee-denominated debt to dollar denomination.
Chairman SECP Mr Akif Saeed highlighted that regulatory requirements for effectively structuring a Private Fund ensure that professional fund management teams, independent of financial institutions, oversee fund management, bringing expertise in private equity, structured finance, and green investments.
He also noted that the asset securitization proposal can potentially pave the way for unlocking of new avenues in Pakistan’s Debt Capital Markets, benefiting all stakeholders. The meeting concluded with a resounding commitment from all participants, including banks and DFIs, to work together for the greater good of Pakistan’s economy.
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