KARACHI — Dr. Shamshad Akhtar, the honorable Caretaker Federal Minister for Finance, Revenue, Economic Affairs chaired a meeting with the Chairman of the Securities Exchange Commission of Pakistan (SECP), bankers and heads of development finance stated that capital market reforms are critical component of the CareTaker Government’s economic revival program. The initiatives are aimed to promote growth and development by harnessing the potential of capital market institutions to diversify sources of financing and exploiting innovative financing modalities.
Bankers and Development Finance Institutions (DFIs) agreed on the need for establishment of private equity and venture funds to serve as a catalyst for economic revival. Chairman SECP reinforced SECP’s commitment and for creating an enabling regulatory environment. The Finance Minister appreciated SECPs active engagement and encouraged banks and DFIs to set the stage for this collaborative effort and fast track the setting up of the private funds to support industrial development.
Habib Bank Limited, representing a consortium of banks, proposed the establishment of a Climate Resilience (CR) Fund under the SECP Private Fund Regulations, 2015. The DFIs tabled 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.
