The Securities and Exchange Commission of Pakistan (SECP) has made significant progress in advancing the digital financial landscape by issuing key licenses to enhance access to financial services through digital platforms.
As a major initiative, SECP issued the country’s first digital general Takaful license to First Digital Takaful Company Limited today. Additionally, Wealth Bridge Management Limited received the first digital investment advisory services license. These initiatives are set to provide innovative financial solutions to consumers across the country.
In a related development, SECP issued a life insurance license to Punjab Life Insurance Limited, which is owned by the provincial government, aimed at supporting the Punjab Health Initiative Program.
Since the appointment of Dr. Kabir Sidhu as SECP Chairman, considerable progress has been made in addressing the backlog of licensing applications. Within a two-month period, the Commission processed 510 applications, reducing the number of pending cases from 1,143 to 633. This effort included the resolution of 84 licensing applications, provision of 20 pre-NOCs, and approval of 53 board and CEO appointments, etc. SECP rejected 37 applications due to insufficient applicant interest or incomplete regulatory standards.
Dr. Sidhu is implementing reforms to remove bottlenecks in various commission departments. These internal changes include setting clear targets for processing applications and eliminating the requirement for prior security clearance when applying for licenses by foreign entities, opting instead for conditional licensing. Additionally, the documentation process for non-profit organizations is being simplified to facilitate smooth registration.
These reforms are part of a broader initiative to modernize Pakistan’s non-banking financial industry, promote financial inclusion, attract foreign investment, and strengthen the regulatory framework for digital services.