Tech-based financial innovation linked to sustainable growth

KARACHI: Mujtaba Ahmad Lodhi, Commissioner, Securities and Exchange Commission of Pakistan (SECP), has urged the industry to focus on tech-based financial innovation to serve the underserved and un-served businesses in Pakistan.

He was speaking at the launching ceremony of the thirteenth edition of the Year Book 2022 of the NBFI and Modaraba Association 2022.

In his keynote, Lodhi highlighted the importance of the NBFI and Modaraba sectors in Pakistan and stressed that the sector has enormous untapped potential and is critical for advancing financial inclusion; therefore, by focusing on these sectors, it can contribute to Pakistan's economic growth and development. He also lauded the association for being active in spreading awareness while encouraging it to work together on the development of innovative products, targeting underserved micro and small businesses.

Lodhi reiterates that the SECP is committed to adapting to technological innovations and fostering a culture of innovation in the financial services industry. He informed participants that the fourth Cohort of the SECP’s regulatory sandbox, specifically targeting the Islamic Finance segment, aims to encourage new ideas, products, services, and business models that are not currently addressed in the existing regulatory regime. He also applauded the Modaraba industry for showing remarkable resilience despite challenges such as the pandemic and political and economic uncertainty.

Speaking at the event, Mahfuz-ur-Rahman Pasha, Chairman NBFI & Modaraba Association, thanked the SECP for its continued support of the association and the industry. Khalida Habib Executive Director, Musarat Jabeen, Executive Director and members of the association were present at the well-attended event.

Copyright Business Recorder, 2023