The non-banking finance industry (NBFI) in Pakistan has experienced significant growth, with its total assets reaching Rs. 3,978.30 billion as of June 30, 2024. This represents a 223.83 percent increase from June 2018, when the assets stood at Rs. 1,228.50 billion.
The Securities and Exchange Commission of Pakistan (SECP) has issued licenses to a total of 612 NBFIs, including mutual funds, asset management companies, pension funds, REIT management companies, and more. Mutual funds account for the largest portion of the industry’s assets, holding 68.1 percent.
The compound annual growth rate of total NBFI assets from June 2018 to June 2024 has been 21.63 percent, indicating consistent and substantial growth over the period.
The Shariah-compliant assets within Pakistan’s non-banking finance industry (NBFI) have experienced remarkable growth, increasing by a substantial 300.3 percent from June 2018 to June 2024. These assets primarily consist of Shariah-compliant mutual funds, pension funds, REIT schemes, and modarabas.
Mutual funds account for the largest portion of NBFI assets, representing 68.1 percent. However, other asset classes like asset management companies, discretionary and non-discretionary portfolios, pension funds, and REIT schemes also contribute to the overall growth of the Shariah-compliant sector.
The significant increase in Shariah-compliant assets reflects the growing demand for Islamic financial products in Pakistan. This trend is likely driven by factors such as increased awareness of Islamic finance principles, a growing Muslim population, and government support for the development of the Islamic finance sector.
Mutual funds in Pakistan have experienced substantial growth, with assets increasing by 298.9 percent from June 2018 to June 2024. The number of investor accounts in open-end mutual funds reached 1,105,821 as of June 30, 2024.
It’s important to note that the investor account count represents individual accounts, not necessarily unique investors. An investor may have multiple accounts with different asset management companies.
Voluntary pension schemes and funds have also shown growth, with total assets increasing from Rs. 26.83 billion in June 2018 to Rs. 76.11 billion in June 2024. The number of investor accounts in these schemes stood at 116,640 as of June 30, 2024.