SECP chairman reaffirms commitment to expand penetration of VPS – Latest News – The Nation

ISLAMABAD – Chairman Securities and Exchange Commission of Pakistan (SECP) Aamir Khan has reaffirmed SECP’s commitment for growing penetration of Voluntary Pension System (VPS). Aamir khan was talking at a webinar organised by the SECP to enhance consciousness about VPS within the company sector and amongst professionals. Pointing in direction of the pension scenario in Pakistan, the chairman shared varied reforms that the SECP has undertaken to encourage each employers and self-employed professionals to take part in VPS, which embody broadening of funding avenues for VPS by permitting them to spend money on REITs, non-public funds, and ETFs, facilitating traders by permitting passive funding methods, and adaptability in altering fund and/or fund supervisor. The individuals mentioned the challenges and alternatives within the non-public pension market and offered options to enhance the uptake of VPS. The panelists mentioned intimately how VPS was a greater various to typical/terminal profit schemes like provident/gratuity funds, and will present the premise for a extra sustainable pension system. Ms. Khalida Habib, Executive Director, Specialized Companies Division briefed the individuals about lately launched amendments within the related laws. The laws had been amended to present ease of doing enterprise by decreasing the quantity of regulatory approvals and eradicating duplications and eliminating redundancies. The webinar dialogue panel comprised of SECP officers, senior professionals, teachers and business leaders together with Dr. Nadeem Ul Haque, Vice Chancellor, PIDE, 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 offers a person retirement account that’s not affected by change in employment, i.e. a participant continues to retain the pension account as opposed to beginning afresh with an occupational retirement plan on the time of switching jobs. Pakistan’s VPS sector, over time, has exhibited promising development, with 22 pension funds amounting to PKR 40 billion, having round 45,000 particular person traders.