SECP Chairman Reaffirms Commitment To Expand Penetration Of Pension Schemes

ISLAMABAD, (UrduPoint / Pakistan Point News – twenty seventh Jul, 2022 ) :The Security and Exchange Commission of Pakistan (SECP) Chairman Aamir Khan has reaffirmed SECP’s dedication for growing penetration of Voluntary Pension System (VPS).

Aamir khan was talking to a webinar, organized by the SECP to extend consciousness about VPS within the company sector and amongst professionals, stated a Press launch issued right here.

Pointing in direction of the pension scenario in Pakistan, the Chairman shared numerous reforms that the SECP has undertaken to encourage each employers and self-employed professionals to take part in VPS, which embrace broadening of funding avenues for VPS by permitting them to put money into REITs, personal funds, and ETFs, facilitating traders by permitting passive funding methods, and suppleness in altering fund and/or fund supervisor.

The members mentioned the challenges and alternatives within the personal pension market and offered solutions to enhance the uptake of VPS.

The panelists mentioned intimately how VPS was a greater different to standard/terminal profit schemes like provident/gratuity funds, and will present the idea for a extra sustainable pension system.

Ms. Khalida Habib, Executive Director, Specialized Companies Division briefed the members about lately launched amendments within the related laws.

The laws have been amended to offer ease of doing business by lowering the variety of regulatory approvals and eradicating duplications and eliminating redundancies.

The webinar dialogue panel comprised of SECP officers, senior professionals, teachers and industry leaders together with Dr. Nadeem Ul Haque, Vice Chancellor, PIDE, Mr. Yasir Qadri, Chief Executive, UBL Funds, Abdul Rehman Warraich and Aquil Raza Khoja, former GM Punjab Pension Fund.

VPS is a tax-advantaged scheme open to all Pakistanis, whether or not salaried or self-employed.

It additionally gives a person retirement account that’s not affected by change in employment, i.e. a participant continues to retain the pension account versus beginning afresh with an occupational retirement plan on the time of switching jobs.

Pakistan’s VPS sector, over time, has exhibited promising progress, with 22 pension funds amounting to PKR 40 billion, having round 45,000 particular person traders.