Business community lauds SECP initiatives for economic revival

Islamabad:The business community has lauded the initiatives of the Securities and Exchange Commission of Pakistan (SECP) aimed at economic revival and strengthening the financial system of the country during the virus emergency.

The SECP has asked the authorities to include insurance, modaraba, non-bank finance sector, non-bank microfinance companies and companies involved in not for profit activities in the list of essential services.

Chairman of the SECP in his letter to the authorities stated that these sectors form an integral part of the economy and their uninterrupted operations are very important, which is very good and timely move.

The letter said that these companies are providing financial facilities to a wide range of customer base many of whom lack access to formal banking or financial services while non-bank microfinance institutions cater to the needs of more than half of the 7.2 million active micro borrowers comprising poor and microenterprises.

A large number of persons, microenterprises, SMEs, corporates and the general public need to access these institutions to manage immediate liquidity demands, therefore they should be facilitated, the letter added. Interruption in services for a long time can adversely affect the investors, depositors, customers and the general public and raise doubts, the letter said.