March 25, 2003	Tuesday	Muharram 21, 1424

ISLAMABAD, March 24: The government has assigned the regulation of Private Pension Schemes and Funds to the Securities and Exchange Commission of Pakistan (SECP), according to an official source.

This fulfils a condition for disbursement of the first tranche of the Financial Markets and Governance Programme Loan of the Asian Development Bank (ADB).

Accordingly, the Finance Division here on Monday issued an administrative order stating, “It has been decided that the Securities and Exchange Commission established under the Securities and Exchange Commission of Pakistan Act, 1997, shall be responsible to regulate Private Pension Schemes as well as the funds developed thereunder. Suitable amendments in this regard shall be made in the relevant laws at the appropriate state.”

Elaborating the importance of proper regulation of pension funds for capital market institutional underpinning, the source explained, it was imperative to develop and strengthen mutual and pension funds.

In this connection, the SECP has also submitted to the government a detailed proposal for promotion of a nation-wide pensions system.

The Finance Markets Governance Programme is an integrated assistance package from the ADB to support development of Pakistan’s non-banking financial markets through reforms.