The Securities and Exchange Commission of Pakistan published a concept note proposing amendments to the Non-Banking Financial Companies framework that would recognise non-banking microfinance services as a distinct form of business and regulate it under a clearer, separate framework within the broader NBFC structure. The proposals are intended to enable more tailored requirements for microfinance institutions, streamline compliance and reduce regulatory overlap. SECP pointed to existing overlap between digital-only investment finance services and microfinance licences as creating ambiguity over mandatory requirements and permitted operational scope, an issue it linked to the growth of digital lending and the need to distinguish the two lending verticals. SECP invited stakeholders to review the concept note and provide feedback to help refine the proposed amendments.
Securites & Exchange Commission of Pakistan 2025-03-19
Securities and Exchange Commission of Pakistan issues concept note proposing a separate NBFC regulatory framework for non-banking microfinance services
The Securities and Exchange Commission of Pakistan released a concept note suggesting amendments to the Non-Banking Financial Companies framework to recognize non-banking microfinance services as a distinct business category. The proposals aim to provide tailored requirements, streamline compliance, and reduce regulatory overlap, addressing ambiguities between digital-only investment finance services and microfinance licenses.