The Securities and Exchange Commission of Pakistan (SECP) has proposed new investment funds designed to support environmentally and socially responsible businesses while offering returns to investors.

The initiative aims to direct savings into projects that meet strong environmental, social, and governance standards, promoting sustainable development and strengthening Pakistan’s financial markets.

As part of this plan, SECP has outlined a clear framework for these funds, requiring most investments to be in responsible businesses while giving asset managers flexibility in their strategies. Strict rules on transparency, governance, and reporting are included to prevent misuse and ensure credibility.

Equity-focused funds will align with the Pakistan Stock Exchange’s upcoming Sustainability Index, while debt-based funds will invest in green and socially responsible instruments.

SECP has published the consultation paper on its website and invited feedback from stakeholders by April 21, 2026.