Acknowledging the challenges involved to meet the 2028 constitutional deadline for the entire national financial sector to be Riba-free, the Securities and Exchange Commission of Pakistan (SECP) has issued a slight relaxation of Shariah compliance rules for asset management companies (AMCs).
“The amendments were finalized following extensive stakeholder consultations, including engagements with AMCs, PFMs (pension fund managers) and the Mutual Funds Association of Pakistan,” SECP said in a statement dated the 15th April 2025.
The 26th Constitutional Amendment Bill was passed by the Pakistan Senate in October 2024, to eliminate Riba transactions by the 1st January 2028, cementing the five-year mandate set down by a 2022 Federal Shariat Court ruling for Pakistan to fully implement an Islamic financial system.
The latest Shariah compliance relaxation comes in the form of final amendments to the Non-Banking Finance Companies and Notified Entities Regulations, 2008 – which took effect from the 10th April 2025. Essentially, the regulator has made it easier for collective investment schemes (CIS) with similar structure and strategy with an existing Islamic scheme to secure a Shariah compliance certificate. All CIS have till the 30th September 2025 to be certified Shariah compliant.
Further, all such funds need to have annual reports prepared by external Shariah auditors – in compliance with regulation 29(5) of the Shariah Governance Regulations, 2023 – for submission to the fund management’s board of directors.
This “annual Shariah advisor’s report will now be included in the financial statements distributed to unit holders and voluntary pension system participants”, the SECP emphasized.
However, the SECP’s new rules do not make any reference to private equity and venture capital operations – which are also expected to need Shariah compliance certification under the 2028 constitutional mandate.
The latest regulatory amendments further scrap the current total expense ratio capping regime – which will be replaced with caps on management fees, effective the 1st July 2025. In addition, new market development charges are imposed – with these to be used for investor education, awareness and market development activities of mutual fund and pension funds.
Table 1: SECP-registered fund managers as at the 31st March 2025
| Firm name | Registration date | |
| 1 | 786 Investments | 26th May 2004 |
| 2 | ABL Asset Management Company | 23rd September 2023 |
| 3 | AKD Investment Management | 21st November 2005 |
| 4 | AL Habib Asset Management | 18th April 2023 |
| 5 | Alfalah Investment Management. | 9th May 2005 |
| 6 | Al-Meezan Investment Management | 5th September 2003 |
| 7 | Atlas Asset Management | 16th June 2003 |
| 8 | AWT Investment | 23rd December 2011 |
| 9 | Faysal Asset Management | 12th November 2003 |
| 10 | First Capital Investments | 9th November 2008 |
| 11 | HBL Asset Management | 15th May 2014 |
| 12 | Lucky Asset Management (formerly Interloop) | 18th April 2022 |
| 13 | JS Investment | 14th May 2003 |
| 14 | Lakson Investments | 18th May 2009 |
| 15 | Mahaana Wealth | 28th April 2022 |
| 16 | MCB Arif Habib Savings and Investments | 23rd August 2003 |
| 17 | National Investment Trust | 14th May 2003 |
| 18 | NBP Fund Management | 13th December 2005 |
| 19 | Pak Oman Asset Management Company | 11th December 2006 |
| 20 | Pak Qatar Asset Management Co. | 12th August 2021 |
| 21 | UBL Fund Managers | 16th June 2003 |
Source: Securities and Exchange Commission of Pakistan
The IFN Investor Funds Database currently tracks 221 Shariah compliant funds operating in Pakistan, with total assets under management standing at US$6.94 billion as at the 20th April 2025.
