KARACHI (March 25 2003) : The government has decided to assign the responsibility of regulation of Private Pension Schemes and Funds to the Securities and Exchange Commission of Pakistan.
The decision has been taken as part of fulfilling the remaining conditions for disbursement of the first tranche of the Financial Markets and Government Programme Loan of the Asian Development Bank.
“It has been decided that the Securities and Exchange Commission of Pakistan, established under the Securities and Exchange Commission of Pakistan Act, 1997, shall be responsible to regulate Private Scheme as well as the funds developed thereunder. Suitable amendments in this regard will be made in the relevant laws at the appropriate stage,” said an administrative order issued by the Finance Division.
In order to provide the capital market institutional underpinning, it is imperative to develop and strengthen mutual and pension funds, it added.
In addition, the Commission has presented a detailed proposal for promotion of pension, a nation-wide pensions system that is under consideration of the Government.
The Financial Markets Governance Programme is an integrated assistance package from the Asian Development Bank to support development of Pakistan's non-banking financial markets through reforms, capacity building and international private sector participation.
In the context, the programme focuses on development of non-banking financial markets including equity markets, debt and money markets, contractual savings, insurance and leasing.