The Securities and Exchange Commission of Pakistan has approved a new reform plan to revive the Exchange Traded Fund market in Pakistan, aiming to improve liquidity, increase investor participation, and reduce overall investment costs.
The reforms were developed after consultation with key institutions including Pakistan Stock Exchange, NCCPL, CDC, MUFAP, brokers, and asset management companies to ensure a strong and practical framework.
Under the new plan, asset management companies will be allowed to directly offer ETFs to investors, making it easier for people to invest without relying only on stock brokers.
The framework also allows AMCs to help investors open brokerage accounts, enabling direct access to ETF investments through digital platforms and improving convenience.
A new revenue-sharing model will be introduced where AMCs can share management fees with brokers, helping expand distribution and attract more investors to the market.
The reforms also propose giving brokers a larger role, including the ability to launch and manage ETFs, which could increase product variety and market depth.
Experts say these changes will make investment in ETFs more accessible, transparent, and cost-effective for both small and large investors in Pakistan.