IGI Life Insurance is set to launch a pension fund in partnership with Mahaana Wealth, Pakistan’s first digital wealth management company.
“The board of directors meeting of IGI held on March 20, 2023, decided to initiate the process of launching a pension fund under the applicable Securities and Exchange Commission of Pakistan (SECP) regulations,” Mahaana Wealth said in a statement.
It added that it will act as an investment advisor of the fund pursuant to the regulatory approvals from the SECP.
IGI Life also shared the development via a notice to the Pakistan Stock Exchange (PSX).
“Subject to requisite regulatory and corporate consents/approvals, the Company shall acquire a certificate of registration to act as a pension fund manager and shall establish the Pension Fund in accordance with the Voluntary Pension System Rules, 2005, the Non-Banking Finance Companies Regulations, 2008, the Sindh Trust Act, 2020, and all such laws that may be applicable,” read the notice.
About Mahaana Wealth?
Founded by Muhammad Shamoon Tariq, Mahaana Wealth is a licensed Non-Banking Financial Company (NBFC) by SECP and is allowed to offer investment management services in Pakistan.
Backed by Mattias Martinsson, co-founder of Swedish fund manager Tundra Fonder, and other international investors, Mahaana Wealth last year closed a $2.1-million pre-seed round.
The funding round was led by Sweden’s Vostok Emerging Finance (VEF), SparkLabs – a startup accelerator affiliated with SparkLabs Global Ventures – and Pakistan’s IGI Insurance.
“Pakistan has a very low penetration of saving and pension accounts (~0.1%) and in the absence of government-based social security programs, the private sector has to step up to introduce such initiatives.,” Tariq, the founder of Mahaana and ex-partner of Tundra Fonder, was quoted as saying in the statement.
“Sweden’s savings & pension penetration is above 90% and it was during the 80s and 90s that they realised the importance saving for the future has on individuals as well as the country at large.”
Mahaana highlighted that the main deterrents to financial inclusion in Pakistan are a lack of awareness, regulatory hurdles, and trust in the financial system.