The financial landscape of the world is changing at a fast pace and the emerging financial products require a cohesive approach towards product innovation and effective market regulation. There can be no better strategy than bringing all the stakeholders on one platform and identifying the gaps that exist in our market vis-à-vis global changes. I appreciate the initiative of SECP and USAID to arrange conference on "Non-bank financial sector and Capital Markets".
The NBF sector that once held the centre stage in Pakistan during 60s-80s has almost faded from the scene. It has a very important role in serving the underserved market segment, representing small and medium enterprises. To ensure development of NBF sector, there is a need for in-depth review of the whole business model and prevalent regime for this sector, with a fresh perspective.
The task of reviewing the entire NBF sector activities is challenging, not only because the issues faced by each constituent of the sector are significant, but also owing to the unique and diversified characteristics of each activity and its stakeholders. This also requires the knowledge of international NBF models being practised in jurisdictions that have successfully developed and nurtured this sector.
Considering this, SECP and USAID has provided a platform to the policy makers, international experts and industry players for discussing the challenges faced by our Non-Bank Financial Sector and sharing international best practices in order to suggest a way forward for development of this sector.
The SECP has embarked on a journey of effective regulation of the securities market and the recent decision to integrate stock exchanges is a landmark achievement in the history of capital markets in Pakistan.
I am confident that this conference would help us in identifying the issues hampering the growth of NBF sector and capital markets. This consultative process is expected to facilitate us in defining the future landscape of Pakistan's financial markets.