P2P, Crowd Lending framework: SECP proposes major amendments to potential
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has proposed major amendments to the potential of Peer-to-Peer (P2P) and Crowd Lending framework in Pakistan.
The SECP has invited feedback on a comprehensive Consultation Paper on the Challenges and Potential of Peer-to-Peer (P2P) and Crowd Lending in Pakistan. The paper also included proposed amendments to the Non-Banking Finance Companies & Notified Entities Regulations, 2008, aimed at expanding access to alternative finance.
The rapid evolution of financial technologies and the growing demand for inclusive and innovative financing solutions has led SECP to conduct an in-depth review of the existing P2P lending framework. The paper presents a comparative analysis of international regulatory models and best practices to inform policy development.
The review identifies several structural and regulatory challenges currently constraining the growth of P2P and crowd lending platforms in Pakistan. These challenges include the absence of securitized lending mechanisms, restrictions on eligible participants, limited options for credit risk diversification, and operational difficulties related to escrow account management.
To address these challenges, the SECP proposes a series of amendments to the P2P lending framework. These proposed changes include increasing loan ticket sizes and exposure limits, strengthening governance requirements for NBFCs operating as P2P service providers, ensuring the financial sustainability of P2P platforms, introducing a trust account structure for fund management, enhancing risk disclosures, and introducing IT and cybersecurity standards for platforms.
The SECP has invited comments and suggestions from all stakeholders, including P2P platforms, fintech innovators, financial institutions, investors, and the general public. Stakeholder feedback will play a critical role in shaping a forward-looking, risk-sensitive, and enabling regulatory environment for P2P lending in Pakistan.
In addition, the SECP also proposed amendments to revise the definitions of SME/MSME and micro-enterprises, enhance credit bureau reporting requirements for lending NBFCs, amend the Code of Corporate Governance applicable to lending NBFCs, and relax the Fit and Proper Criteria for Fintech Startups in the lending space.
The Consultation Paper and draft notification of the proposed amendments are available on the SECP website. Comments may be submitted by June 20, 2025, via email to [email protected].
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
16 hours ago
- Business Recorder
Pakistan explores collaborative opportunities with Russian oil and gas company
ISLAMABAD: A high-level Pakistani delegation, led by Federal Minister for Petroleum Ali Pervaiz Malik, held a meeting with representatives of Gazprom, Russia's leading oil and gas company, headed by Sergey Tumanov, general director of Gazprom International. Ahmed Hayat Lak, MD/CEO Oil and Gas Development Company Limited (OGDCL), was also present in the meeting. The discussions focused on enhancing bilateral cooperation in the energy sector, with a particular emphasis on joint ventures and business development opportunities between OGDCL and Gazprom International. Pakistan, Russia discuss energy, trade cooperation During the meeting, both parties reaffirmed their commitment to strengthening energy collaboration, leveraging Pakistan's growing energy demands and Gazprom's extensive expertise in oil and gas exploration, production, and infrastructure development. The discussions highlighted potential areas of partnership. It was agreed that OGDCL and Gazprom International would continue discussions to identify viable projects and partnerships, ensuring sustainable energy development and economic growth for both countries. The meeting marks a significant step forward in Pakistan-Russia energy relations, reinforcing the shared vision of energy collaboration and economic prosperity. Copyright Business Recorder, 2025
Business Recorder
17 hours ago
- Business Recorder
Faisalabad Institute of Cardiology: ‘Govt, FCCI, business community to add new emergency block'
FAISALABAD: The business community of Faisalabad is playing a key role in the comprehensive development of Faisalabad in addition to providing latest health facilities to its inhabitants, said Rehan Naseem Bharara, President Faisalabad Chamber of Commerce & Industry (FCCI). He said that Faisalabad Institute of Cardiology (FIC) was overburdened with the heavy influx of cardiac patients from all over the region and Government in collaboration with FCCI and business community has decided to add a new emergency block with 70 beds which could be further expanded up to 250 beds. Bharara appreciated the generosity of the business community and said that leading local philanthropists including Seth Iftikhar, Mian Javed Iqbal, Farrukh Zaman and Mian Sheroz in close collaboration with FCCI and administration have focused on this public welfare project which would be completed with the donations of the business community. He also thanked Provincial Health Minister Khawaja Salman Rafique, Secretary Health Azmat Mehmood, Special Secretary Health Tariq Rehmani, Divisional Commissioner Madam Maryum Khan and Deputy Commissioner Captain Retired Nadeem Nasir for their keen interest in this project. He said that it would not only facilitate the local heart patients but also cater to the immediate needs of the adjoining divisions. He said that FCCI would play a motivational and catalytic role for its early completion while Seth Iftikhar would personally supervise the construction work. Copyright Business Recorder, 2025
Business Recorder
18 hours ago
- Business Recorder
LCCI, PPH agree to enhance bilateral trade with African countries
LAHORE: The Lahore Chamber of Commerce & Industry and Pakistan Products House have signed a Memorandum of Understanding aimed at enhancing bilateral trade, industrial collaboration economic cooperation between Pakistan and African countries. The MoU was formally signed by LCCI President Mian Abuzar Shad and Managing Director of Pakistan Products House Shahid Sajjad Hussain. LCCI Executive Committee Members Khuram Lodhi and Ahsan Shahid were also present on the occasion. Under the agreement, both organizations will work together to strengthen business-to-business cooperation and expand economic linkages based on mutual interests. The MoU also outlines the exchange of business reports, research studies, market surveys, magazines, newsletters other trade-related information to enhance mutual understanding of market dynamics and policy frameworks. The two sides have agreed to jointly organize B2B meetings, trade exhibitions, seminars, conferences other trade-related events to build strong connections between the business communities of Pakistan and Africa. Speaking at the signing ceremony, LCCI President Mian Abuzar Shad said that the agreement marks a significant step forward in boosting Pakistan's exports and promoting 'Made in Pakistan' products in emerging African markets. He noted that Africa presents vast untapped potential for Pakistani industries such collaborations can unlock new trade opportunities. Shahid Sajjad Hussain, Managing Director of PPH, said that Pakistan Products House, established in six key cities across Africa, serves as a robust platform for showcasing high-quality Pakistani products. He said that the MoU will provide Pakistani exporters with enhanced access to new markets and buyers. This strategic partnership is expected to open new doors for Pakistan's business community looking to establish or expand their footprint in Africa. It is anticipated that this collaboration will not only boost exports but also strengthen bilateral economic ties between Pakistan and African nations. Copyright Business Recorder, 2025
