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Saturday June 22, 2024

SECP launches NBFI yearbook

By News Desk
May 23, 2024
The picture shows the building of the Securities and Exchange Commission of Pakistan (SECP). — The News/File
The picture shows the building of the Securities and Exchange Commission of Pakistan (SECP). — The News/File

KARACHI: The Commissioner of the Specialized Companies Division of the Securities and Exchange Commission of Pakistan (SECP), Mujtaba Ahmed Lodhi, launched the NBFI & Modaraba Association of Pakistan's Year Book 2023.

The Year Book provides vital information about the Non-Banking Financial Institutions (NBFIs) and Modaraba sector, which showed significant improvement in assets, profitability, dividend distribution, and tax payments despite challenges.

The Year Book indicates that despite its challenges, the NBFIs and Modaraba sector has shown significant improvement, particularly in terms of assets, profitability, dividend distribution and tax payments.

The assets of the sector increased to Rs158,404 million in FY 2023 as compared to Rs. 142,918 million in FY 2022. However, the total equity of the sector decreased to Rs51,518 million in FY 2023 from Rs55,358 million in FY 2022/ the decline in equity attributed to departure of a few of the Modaraba members owing to transformation in their business models. Despite reduction in equity, the sector’s overall profitability reached Rs3,431 million in FY 2023 compared to Rs2,445 million in FY 2022 reflecting an increase of Rs 986 million.

Lodhi emphasized the need for NBFI and Modarabas to expand their role in order to effectively promote financial inclusion in Pakistan and also urged market participants to focus on technological advancement, innovation, product diversification, capacity building, and high governance standards to ensure their role in the financial sector is further enhanced.