Financial Crime World

Title: Regulating the Economy: An Analysis of Pakistan’s Financial Regulatory Agencies

Introduction

In the economically dynamic landscape of Pakistan, the private sector has dominated the economic scene, except for the unusual period in the 1970s. This article offers an overview of the regulatory bodies and the regulatory framework in Pakistan.

Regulatory Bodies in Pakistan

Pakistan’s regulatory institutions encompass various sectors, including business entry and exit, pricing, credit, foreign exchange, imports, investments, and more. These regulations were imposed to manage private sector allocations in accordance with national priorities.

  • State Bank of Pakistan (SBP)

    • Mandate: Monetary policy, financial supervision, and foreign exchange management
    • Role: Manages the country’s economy, regulates banks, Development Financial Institutions (DFIs), non-banking financial institutions (NBFIs), and other financial intermediaries (Source)

  • Securities and Exchange Commission of Pakistan (SECP)

    • Functions: Registering, regulating, and supervising various securities markets in the country
    • Responsibilities: Administrating the Companies Act, 2017, and authorizing the issuance and cancellation of licenses of securities companies, investment advisers, and portfolio managers (Source)

  • National Electric Power Regulatory Authority (NEPRA)

    • Responsibilities: Approval of tariffs, licensing of electricity generation, distribution, and transmission projects, and determination of access charges (Source)

  • Pakistan Telecommunication Authority (PTA)

    • Functions: Regulating the country’s telecommunications sector, issuing licenses, providing wireless and wired communication services, and managing electromagnetic spectrum
    • Responsibilities: Implementing national policies and regulatory frameworks to promote universal access, affordability, and competitiveness (Source)

Collaboration and Communication among Regulatory Bodies

Given the multifaceted nature of financial regulation, collaboration and communication amongst these regulatory bodies are crucial for effective economic governance. The SBP, for example, regularly engages in discussions with the SECP to promote cooperation and address common issues within their respective mandates.

Conclusion

The story of Pakistan’s regulatory agencies is complex and dynamic, revealing the intricacies of navigating economic priorities while curbing unintended consequences. The landscape of economic regulation in Pakistan continues to evolve, offering insights into the ongoing balancing act of fostering growth while ensuring the protection of public interest.

References

Mian Abid Qayyum (Author)