The total assets of Pakistan’s non-banking finance industry (NBFI) have reached Rs 3,978.30 billion as of June 30, 2024, according to a sector report by the Securities and Exchange Commission of Pakistan (SECP).
The report, prepared by the NBFC Team within the Licensed and Unlisted Companies Department, highlights the significant growth in the industry over recent years.
The SECP has issued 612 licenses to various entities within the NBFI sector, including mutual funds and plans, asset management companies, investment advisors, discretionary and non-discretionary portfolios, pension funds, REIT management companies, real estate investment trusts, private fund managers, private equity and venture capital funds, lending investment banks, non-bank microfinance companies, leasing companies, modarabas, and housing finance companies.
Mutual funds represent the largest portion of the industry’s assets, accounting for 68.1 percent of the total, according to SECP data. The industry’s assets have grown from Rs 1,228.50 billion in June 2018 to Rs 3,978.30 billion in June 2024, marking a 223.83 percent increase over this period. The compound annual growth rate of total assets from June 2018 to June 2024 stands at 21.63 percent.
Shariah-compliant assets have seen a remarkable growth of 300.3 percent from June 2018 to June 2024. These assets include Shariah-compliant mutual funds, pension funds, REIT schemes, and modarabas, while the remaining assets in the NBFI industry are considered conventional.
The breakdown of the NBFI’s total assets is as follows: mutual funds (68.1%), asset management companies/investment advisors (1.6%), discretionary and non-discretionary portfolios (14.5%), pension funds (1.9%), REIT management companies (0.3%), real estate investment trusts (4.1%), private fund managers (0.0%), private equity and venture capital funds (0.2%), lending investment banks (2.9%), non-bank microfinance companies (4.9%), leasing companies (0.2%), modarabas (1.2%), housing finance companies (0.0%), and discounting (0.0%).
The mutual funds sector alone has seen a growth of 298.9 percent from June 2018 to June 2024. As of June 30, 2024, the total number of investor accounts in open-end mutual funds stood at 1,105,821. It is important to note that the number of investor accounts differs from the number of individual investors, as one investor may hold multiple accounts with different asset management companies.
Additionally, the total assets of voluntary pension schemes and funds increased from Rs 26.83 billion in June 2018 to Rs 76.11 billion in June 2024. The total number of investor accounts in these schemes reached 116,640 as of June 30, 2024.
