Total Assets of Non-Banking Finance Industry Hit Nearly Rs. 4 Trillion

The total assets of the non-banking finance industry (NBFI) stood at Rs. 3,978.30 billion as of June 30, 2024. According to the sector report prepared by the NBFC Team, Licensed and Unlisted Companies Department, Supervision Division of the Securities and Exchange Commission of Pakistan (SECP), the SECP has issued 612 licenses to the NBFI including Mutual Funds and Plans; Asset Management Companies/ Investment Advisors; Discretionary & Non-Discretionary Portfolios; Pension Funds; REIT Management Companies; Real Estate Investment Trust; Private Fund Managers; Private Equity & Venture Capital Funds; Lending Investment Banks; Non-Bank Microfinance Companies; Leasing Companies; Modarabas and Housing Finance Companies. Mutual funds have the highest percentage (68.1 percent) of assets in the total industry, as per SECP data. The trend of growth of assets of the NBFI industry revealed that the assets have increased from Rs. 1,228.50 billion in June 2018 to Rs. 3,978.30 billion in June 2024. The growth of assets is 223.83 percent since June 2018 till June 2024. The Compound Annual Growth Rate of total assets from June 2018 till June 2024 stood at 21.63 percent. There is a growth of 300.3 percent in the Shariah Compliant Assets from June 2018 till June 2024. The Shariah Compliant assets include assets of Shariah Compliant Mutual Funds, Shariah Compliant Pension Funds, Shariah compliant REIT Schemes, and Modarabas, while the rest of the assets of the NBFI industry are considered conventional assets. The Mutual Funds percentage of total assets of the NBFI is 68.1 percent; Asset Management Companies/ Investment Advisors (1.6 percent); Discretionary & Non-Discretionary Portfolios –(14.5 percent); Pension Funds (1.9 percent) ; REIT Management Companies(0.3 percent); Real Estate Investment Trust(4.1 percent); Private Fund Managers (0.0 percent); Private Equity & Venture Capital Funds (0.2 percent) Lending Investment Banks (2.9 percent); Non-Bank Microfinance Companies (4.9 percent); Leasing Companies(0.2 percent); Modarabas (1.2 percent); Housing Finance Companies(0.0 percent) and Discounting (0.0 percent). The mutual funds have witnessed a growth of 298.9 percent from June 2018 to June 2024. Within the said sub-sector of mutual funds, the total number of investors’ accounts stood at 1,105,821 as of June 30, 2024. The data shows the number of investor accounts in open-end mutual funds only. The number of investors’ accounts is different from the number of investors in the mutual fund industry i.e. If Investor- A has opened three accounts with three different Asset management companies, the same shall be reported as three investor accounts instead of one investor, SECP added. Total assets of Voluntary Pension Schemes/Funds stood at Rs. 26.83 billion in June 2018 which increased to Rs. 76.11 billion in June 2024. The total number of investors accounts stood at 116,640 as on June 30, 2024.