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The Securities and Exchange Commission of Pakistan (SECP) has unveiled major changes to the Non-Banking Finance Companies (NBFC) Regulations, 2008, aimed at boosting fintech innovation and improving access to finance. The revisions target technology-driven lending, inclusive governance, and stronger borrower protection.
Under the new rules, experience requirements for founders and CEOs of lending NBFCs have been relaxed, encouraging young entrepreneurs to enter the regulated digital lending market. A simplified Borrower Factsheet has also been introduced to ensure transparent onboarding, clearly outlining loan terms, pricing, and obligations.
The framework now includes Credit Guarantee Institutions (CGIs) to provide credit guarantees and promote risk sharing. SECP has also set enhanced exposure limits and sustainability standards for CGIs, aiming to strengthen financial inclusion for underserved segments.
Peer-to-peer (P2P) lending reforms allow securitized lending, higher prudential limits, and stricter disclosure requirements. These measures are designed to protect lenders, ensure transparency in fund flows, and maintain the sustainability of P2P platforms.
For non-banking microfinance companies, loan limits for microenterprise and housing finance have doubled from PKR 1.5 million to PKR 3 million. The definition of microenterprise has been revised to expand outreach and provide small businesses with access to larger loans.
The amendments also increase the minimum number of female directors on NBMFC boards from one to two, with at least one required to be independent, promoting gender diversity. Additionally, all NBFCs must now report to credit bureaus, improving credit history tracking and borrower assessment.
These reforms reflect SECP’s ongoing commitment to a responsible, technology-driven lending ecosystem while enhancing transparency, investor protection, and sector resilience.
