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The Securities and Exchange Commission of Pakistan (SECP) has introduced a dedicated Infrastructure Mutual Funds framework under open-end collective investment schemes. The move aims to channel long-term domestic savings into critical infrastructure projects, strengthening Pakistan’s capital markets and supporting economic growth.
Background
Pakistan faces an urgent need to expand infrastructure, with financing requirements of nearly USD 15 billion annually. Current spending is only 2.1% of GDP, well below global standards. The framework was developed after consultations with the Mutual Funds Association of Pakistan (MUFAP) and other stakeholders, ensuring regulatory clarity, investor protection, and alignment with national development priorities.
Key Features
AMCs can structure schemes as equity, debt, or hybrid funds.
Eligible sectors include energy, transport, water, sanitation, hospitals, schools, industrial parks, and tourism.
Minimum fund sizes of Rs. 100 million, with seed capital of Rs. 25 million for closed-end schemes.
70% of net assets must be invested in infrastructure securities; NAV disclosure at least monthly.
Management fees capped at 3% for equity and 1.5% for debt; no sales load except early redemption contingencies.
Strategic Impact
By establishing this dedicated category, SECP aims to bridge Pakistan’s infrastructure financing gap through long-term domestic savings while providing strong investor protections. The initiative reinforces SECP’s commitment to sustainable economic growth and positions capital markets as a vital tool for national development.
This initiative provides investors with a transparent, well-structured avenue to support projects of national significance while bridging Pakistan’s infrastructure financing gap.
