The Securities and Exchange Commission of Pakistan (SECP) has launched a Digital Asset Management Company (AMC) framework that could reshape how Pakistanis invest in mutual funds. The move aims to lower entry barriers, speed up processes, and bring the entire investor experience online.
Announcing the reforms at a press briefing, SECP Commissioner Zeeshan Rehman Khattak said the new approach combines innovation with strong investor protection.
We want a market that is open, transparent, and easy for people to access. Digital AMCs will make investing simpler and more efficient for everyone.
Lower Barriers for New Players
The framework cuts the minimum equity and fund size requirements for starting an AMC, making it easier for new and smaller companies, especially those using fintech, to join the market.
For the first time, investors will be able to sign up, verify, and manage their investments fully online. No paperwork, no branch visits; everything can be done digitally. Experts believe this will attract younger, tech-savvy investors and people living in areas far from major financial centers.
Faster, Simpler Operations
The rules also streamline operational processes, allowing fund managers to launch new products faster and at lower cost. This opens the door for more diverse offerings, including Exchange Traded Funds (ETFs), ESG-focused funds, and investment products linked to infrastructure projects.
Analysts say the change could encourage healthy competition, better pricing, and a wider choice of funds for investors.
Part of a Bigger Reform Push
The Digital AMC initiative is just one part of SECP’s broader effort to update the mutual funds sector. In a landmark decision, the Mutual Funds Association of Pakistan (MUFAP) has been registered as the country’s first Self-Regulatory Organization (SRO) in the financial services industry. MUFAP will now help oversee compliance, improve transparency, and run investor awareness programs.
SECP has also published a white paper outlining other key areas for reform, such as:
- Expanding digital services across the industry
- Developing the ETF market
- Launching ESG and infrastructure funds
- Boosting financial inclusion nationwide
A dedicated committee has been set up to speed up ETF market growth and attract more retail investors.
Digital AMC framework Pakistan: What This Means for Investors
With lower costs and a digital-first setup, more companies will be able to offer regulated investment options, giving Pakistanis a safer and easier way to grow their money. The move is also expected to help mutual funds reach more people in smaller cities and towns.
If the reforms are implemented well, experts believe they could raise Pakistan’s mutual fund participation rate, which remains low compared to other countries in the region.
As Khattak summed it up:
This isn’t just a regulatory change—it’s a step towards making investment opportunities available to everyone, no matter where they live.
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