Islamabad, December 16, 2015 (PPI-OT): The Securities and Exchange Commission of Pakistan (SECP) briefed the Pakistan Microfinance Network (PMN) and Pakistan Poverty Alleviation Fund (PPAF) about the roadmap for smooth transition of existing Micro Finance Institutions (MFIs) into Non-Bank Micro Finance Companies (NBMFCs).
The SECP has recently introduced the regulatory framework for Non-Bank Micro Finance Companies (NBMFCs). As part of its commitment towards the regulation of Non-Bank Micro Finance Institutions (NBMFIs), the SECP holds a briefing session for Pakistan Microfinance Network (PMN) and Pakistan Poverty Alleviation Fund (PPAF).
The objective of the session was to discuss the recently introduced regulatory framework for Non-Bank Micro Finance Companies (NBMFCs). PMN, being the network of 51 retail microfinance providers representing 99% of the total microfinance outreach in Pakistan and PPAF, being the provider of whole sale funding in micro finance sector, are the two major stakeholders.
SECP team gave a detailed presentation to the representatives of PMN and PPAF followed by an extensive briefing session. As per the microfinance framework, the existing Microfinance Institutions (MFIs) can apply for investment finance services license to undertake microfinance business as NBMFCs subject to compliance with certain requirements. The NBMFCs can provide any type of micro financing.
During the briefing, a roadmap for the smooth transition of existing MFIs into NBMFCs was also discussed. SECP emphasized upon the role of PMN and PPAF as facilitators in smooth transition of MFIs into NBFC regime. SECP team ensured to facilitate the entire transition process by providing guidance and support.
For more information, contact:
Shakil Ahmad Chaudhary
Head, Internal and External Communication
Securities and Exchange Commission of Pakistan (SECP)
NIC Building, 63 Jinnah Avenue, Islamabad
Tel: +92-51-9214005 or +92-51-9214009 (Ext. 378)