Financial Regulation in Pakistan: An Overview of Key Agencies
In the dynamic economic landscape of Pakistan, financial regulatory bodies play a vital role in protecting investor interests, maintaining market integrity, and fostering financial stability. In this article, we shed light on the significant institutions overseeing the economic sector in Pakistan.
Securities and Exchange Commission of Pakistan (SECP)
- Established: 1997
- Role: The primary regulator for Pakistan’s capital market
- Mission: To protect investors, ensure fair play in the securities market, and contribute to the development of an efficient and sustainable capital market.
State Bank of Pakistan (SBP)
- Established: 1948
- Role: Functions as the central bank of Pakistan
- Responsibilities: Controlling the country’s monetary policy, maintaining price stability, and issuing and managing the national currency - the Pakistani Rupee.
National Bank of Pakistan (NBP)
- Established: 1949
- Role: The largest commercial bank in Pakistan
- Additional Functions: Acts as the government’s principal banking advisor and manages various state-owned enterprises.
Pakistan Stock Exchange (PSX)
- Established: Initially in 1952, resumed operations in 1996
- Role: Pakistan’s primary stock exchange
- Function: Provides a platform for trading various securities, including equities and corporate bonds.
National Investment Trust (NIT)
- Established: 1972
- Role: Serves as the country’s central trustee and custodian
- Responsibilities: Manages and holds securities on behalf of numerous clients, including various pension funds, insurance companies, and mutual funds.
Regulatory and Policy Implementation Unit (RPIU)
- Established: Under the Ministry of Finance
- Role: Tasked with implementing financial regulations and monitoring regulatory compliance
- Additional Function: Acts as the nodal agency for coordinating efforts between various regulatory bodies to maintain a cohesive regulatory framework.
These regulatory agencies work collectively to build investor confidence, strengthen market structures, and contribute to the sustainable growth of Pakistan’s economy.