SECP Proposes ESG Mutual Fund Framework for Sustainable Investing

SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN (SECP) PRESS RELEASE For immediate release SECP Proposes ESG Mutual Funds to Promote Sustainable Investing April 6, 2026 ISLAMABAD, April 6: The Securities and Exchange Commission of Pakistan (SECP) has proposed the launch of Environmental, Social and Governance (ESG) Mutual Funds to pro-mote sustainable investment and offer new opportunities to investors.The proposed ESG funds will allow investors to earn returns while supporting businesses and projects that meet environmental, social, and governance standards. The initiative is expected to channel savings into responsible investments, promote sustainable develop-ment, and strengthen Pakistan's capital markets in line with global trends.The proposal is part of SECP's broader ESG Regulatory Roadmap, which focuses on im-financial sector with international standards.proving transparency, encouraging responsible business practices, and aligning Pakistan's In recent years, SECP has taken several steps to build an ESG ecosystem. These include issuing ESG Disclosure Guidelines, adopting international sustainability reporting stand-ards such as IFRS S1 and S2, strengthening corporate governance frameworks, and devel-oping ESG data platforms like ESG Sustain.To address the lack of structured sustainable investment products, SECP has proposed a and flexible. It requires at least 70 percent of investments to be made in ESG-aligned clear and regulated framework for ESG mutual funds. The framework is principle-based assets, while allowing asset managers to adopt different investment strategies.The framework also introduces strong disclosure requirements, governance standards, measures aim to build investor confidence and ensure the credibility of ESG products.and assurance mechanisms to ensure transparency and prevent greenwashing. These For equity-based ESG funds, investments will be aligned with the Pakistan Stock Ex-change's upcoming Sustainability Index. Until its launch, asset management companies will rely on internal ESG assessment methods. Debt-based funds will invest in green, social, and sustainability-linked instruments under Pakistan's Green Taxonomy and SECP guidelines. The consultation paper is available on SECP's website, and stakeholders have been invited to submit feedback by April 21, 2026..

Securities and Exchange Commission of PakistanNICL Building, 63 Jinnah Avenue, Islamabadﯽﺟ سﯾا یا ﮯﯾﻟ ﮯﮐ یرﺎﮐ ہﯾﺎﻣرﺳ ںﯾﻣ رﮢﮑﯾﺳ تﺳود لوﺣﺎﻣ ﯽﮐ ﯽﭘ ﯽﺳ یا سﯾاSECURITIES AND EXCHANGE COMMISSION OF PAKISTAN (SECP) زﯾوﺟﺗ ﯽﮐ ﮯﻧارﮐ فرﺎﻌﺗﻣ زڈﻧﻓ لﭼوﯾﻣ PRESS RELEASEFor immediate release April 6, 2026 ںوﯾﻧﭘﻣﮐ ﯽﻟاو ﮯﻧﺎﻧﭘا ںﺎﯾﺳﯾﻟﺎﭘ تﺳود لوﺣﺎﻣ ﮯﻧ نﺎﺗﺳﮐﺎﭘ فآ نﺷﯾﻣﮐ ﺞﻧﯾﭼﺳﮑﯾا ڈﻧﯾا زﯾﮢروﯾﮑﺳ :لﯾرﭘا 6 ،دﺎﺑآ مﻼﺳا ﮯﮐ زڈﻧﻓ لﭼوﯾﻣ سﻧﻧروﮔ روا ﯽﺟﺎﻣﺳ ،ﯽﺗﺎﯾﻟوﺣﺎﻣ ﯽﻧﻌﯾ ﯽﺟ سﯾا یا ﮯﯾﻟ ﮯﮐ ﮯﻧﯾد غورﻓ وﮐ یرﺎﮐ ہﯾﺎﻣرﺳ ںﯾﻣ ٹﺋﺎﺳ بﯾو ﯽﮐ ﯽﭘ ﯽﺳ یا سﯾا رﭘﯾﭘ هدرﮐ زﯾوﺟﺗ ﺎﮐ ءارﺟا ﮯﮐ زڈﻧﻓ لﭼوﯾﻣ ﯽﺟ سﯾا یا ۔ﮯﮨ ید زﯾوﺟﺗ ﯽﮐ ءارﺟا ۔ﮯﮨ ﺎﯾﮔا ید رﮐ یرﺎﺟ ﮯﯾﻟ ﮯﮐ ءارا ﯽﮐ ںورڈﻟوﮨ ﮏﯾﮢﺳا رﭘںوﯾﻧﭘﻣﮐ ڈﮢﺳﻟ ،رﺎﺑورﺎﮐ ﮯﺳﯾا دﺻﯾﻓ 70 ﺎﮐ زڈﻧﻓ هدرﮐ ٹﺳوﻧا ﮯﮐ ںورﺎﮐ ہﯾﺎﻣرﺳ ، زڈﻧﻓ لﭼوﯾﻣ ﯽﺟ سﯾا یا هزوﺟﻣ ٰ۔ںوﮨ ﮯﺗرﺗا اروﭘ رﭘ رﺎﯾﻌﻣ ﯽﻠﻋا ﮯﮐ سﻧﻧروﮔ روا ﯽﺟﺎﻣﺳ ،ﯽﺗﺎﯾﻟوﺣﺎﻣ وﺟ ﮯﮔ ںﯾرﮐ ٹﺳوﻧا ںﯾﻣ ںوﺑوﺻﻧﻣ روا ﮯﻧﯾد غورﻓ وﮐ ﯽﻗرﺗ رادﯾﺋﺎﭘ ،ﮯﻧرﮐ بﻏار فرط ﯽﮐ یرﺎﮐ ہﯾﺎﻣرﺳ تﺳود لوﺣﺎﻣ وﮐ ںوﺗﭼﺑ زڈﻧﻓ ﯽﺟ سﯾا یا ۔ﮯﮔ ںوﮨ نوﺎﻌﻣ ںﯾﻣ ﮯﻧﺎﻧﺑ مﮑﺣﺗﺳﻣ قﺑﺎطﻣ ﮯﮐ تارﺎﯾﻌﻣ ﯽﻣﻟﺎﻋ وﮐ سﮢﯾﮐرﺎﻣ لﮢﯾﭘﯾﮐ ﯽﮐ نﺎﺗﺳﮐﺎﭘ رواسﺟ ،ﮯﮨ لﺳﻠﺳﺗ ﺎﮐ پﯾﻣ ڈور یرﮢﯾﻟوﮕﯾر تﺳود لوﺣوﻣ ﻊﻣﺎﺟ ﮯﮐ ﯽﭘ ﯽﺳ یا سﯾا ، زﯾوﺟﺗ ﯽﮐ زڈﻧﻓ ﯽﺟ سﯾا یا ۔ﮯﮨ ﺎﻧﯾد غورﻓ وﮐ ںوﯾور یرﺎﺑورﺎﮐ راد ہﻣذ روا تﯾﻓﺎﻔﺷ ، سﻧﻧروﮔ ںﯾﻣ ںوﯾﻧﭘﻣﮐ دﺻﻘﻣ ﺎﮐرژوﻠﮑﺳڈ ﯽﺟ سﯾا یا ،ﮯﯾﻟ ﮯﮐ ﮯﻧﯾد غورﻓ وﮐ کرو مﯾرﻓ ﯽﺟ سﯾا یا ںﯾﻣ رﮢﮑﯾﺳ ٹﯾروﭘرﺎﮐ ﯽﭘ ﯽﺳ یا سﯾا ﺢﺿاو ﮏﯾا ﮯﯾﻟ ﮯﮐ زڈﻧﻓ لﭼوﯾﻣ ﯽﺟ سﯾا یا ۔ﮯﮨ ﺎﮑﭼ رﮐ ارﺟا ﺎﮐ تارﺎﯾﻌﻣ ﮓﻧﮢروﭘر ﯽﺟ سﯾا یا روا زﻧﺋﻻ ڈﯾﺋﺎﮔ ۔ﮯﮨ ﺎﯾﮔ ﺎﯾﮐ زﯾوﺟﺗ کرو مﯾرﻓ هدﻋﺎﻗﺎﺑ رواروا تﯾﻓﺎﻔﺷ ںﯾﻣ یرﺎﮐ ہﯾﺎﻣرﺳ ﯽﮐ زڈﻧﻓ ، ںوﯾﻧﭘﻣﮐ لﻣﺎﺣ ﯽﮐ تارﺎﯾﻌﻣ ﮯﮐ سﻧﻧروﮔ رﮯﺗﮩﺑ ںﯾﻣ کرو مﯾرﻓ سا ۔ںﯾﮨ ںﯾﺋﮔ ید زﻧﺋﻻ ڈﯾﺋﺎﮔ ﮯﯾﻟ ﮯﮐ مﺎﮭﺗ کور ﯽﮐ ﮓﻧﺷاو نﯾرﮔ روا ﯽﮨدﻧﺎﺷﻧ ﯽﮐ ںوﺑوﺻﻧﻣ تﺳود لوﺣﺎﻣسﮑﯾڈﻧا ﯽﮢﯾﻠﺑﯾﻧﯾﮢﺳﺳ هزوﺟﻣ ﮯﮐ ﺞﻧﯾﭼﺳﮑﯾا کﺎﮢﺳا نﺎﺗﺳﮐﺎﭘ یرﺎﮐ ہﯾﺎﻣرﺳ ﯽﮐ زڈﻧﻓ ﯽﺟ سﯾا یا ﯽﻧﺑﻣ رﭘ ﯽﮢﺋوﮑﯾا ﺎﮐ تارﺎﯾﻌﻣ ﯽﺟ سﯾا یا ﯽﻠﺧاد ﮯﮐ زڈﻧﻓ ﮯﻧﭘا زرﺟﯾﻧﯾﻣ ٹﺳﯾا ،ﮏﺗ ءارﺟا ﮯﮐ سﮑﯾڈﻧا سا ۔ﯽﮔوﮨ ﮓﻧﮨآ مﮨ ﮯﺳ قﺑﺎطﻣ ﮯﮐ زﻧﺋﻻ ڈﯾﺋﺎﮔ ﯽﭘ ﯽﺳ یا سﯾا روا ﯽﻣوﻧﺎﺳﮑﯾﮢ نﯾرﮔ ﯽﮐ نﺎﺗﺳﮐﺎﭘ وﮐ زڈﻧﻓ ٹﯾڈ ہﮑﺑﺟ ۔ﮯﮔ ںﯾرﮐ شﯾﭘ هزﺋﺎﺟ ۔ﺎﮔ ﮯﮑﺳ ﺎﺟ ﺎﯾﮐ ٹﺳوﻧا ںﯾﻣ ٹﮐڈارﭘ لﺷﻧﺎﻧﻓ ﮏﻠﺳﻧﻣ ﮯﺳ ﯽﮢﯾﻠﺑﯾﻧﯾﮢﺳﺳ روا ﯽﺟﺎﻣﺳ ،نﯾرﮔزرڈﻟوﮨ ﮏﯾﮢﺳا روا ،ﮯﮨ ﺎﯾﮔ ﺎﯾد رﮐ مﮨارﻓ رﭘ ٹﺋﺎﺳ بﯾو ﯽﮐ ﯽﭘ ﯽﺳ یا سﯾا رﭘﯾﭘ ٹﭘﺳﻧﺎﮐ ﺎﮐ زڈﻧﻓ لﭼوﯾﻣ ﯽﺟ سﯾا یا ۔ںﯾﮨ ﮯﺗﮑﺳ ےد ۓار ﯽﻧﭘا ﮏﺗ 2026 لﯾرﭘا 21 ﮯﺳ Securities and Exchange Commission of PakistanNICL Building, 63 Jinnah Avenue, Islamabad