SECP organises forum

ISLAMABAD: Development of microfinance industry depends upon the resilience and risk management achieved through quintessential pillars of liquidity-tapped through private capital and technology embracement, an official said on Tuesday.

Addressing the Non-Bank Microfinance Companies Stakeholders Forum, SECP Chairman Amir Khan advised NBMFCs to go for product diversification to insurance solutions and saving products and builds capacity of their workforce to attain business development and operational efficiency.

He endorsed the formation of a working group consisting of nominees from the commission, Pakistan Microfinance Network, Pakistan Microfinance Investment Company Limited and NBMFCs to further analyse the situation.

The working group will also take up the matters with the relevant forums, including the Ministry of Finance, State Bank of Pakistan (SBP) and multilateral donor agencies for possible solutions, he said, and expressed the SECP’s firm commitment to providing all possible support to industry not only during the current pandemic times, but also in developing the industry on a strong footing.

The forum was organised by the SECP to devise a way forward and collaborate strategic response to cope with the challenges posed by COVID-19 pandemic and ensuing lockdowns. The SECP chairman along with Commissioner Specialized Companies Division Farrukh Sabzwari chaired the session.

Sabzwari highlighted the measures taken by the commission to provide relief and flexibility to the NBMFCs and their wholesale lender in managing funding requirements. He also talked about the SECP’s advice to NBMFCs to defer and reschedule borrower loans.