ISLAMABAD: The aggregate asset size of the Non-Banking Financial Sector was Rs2,110 billion as of June 30, 2022, posting a growth of 17.9 percent as compared to assets of Rs1,790 billion as of June 30, 2021.
According to the data on the non-banking financial companies (NBFCs) issued by the Securities and Exchange Commission of Pakistan (SECP) on Thursday, the assets under management (AUMs) of the mutual fund industry are the largest segment within the NBF sector with assets of Rs 1,281 billion as on June 30, 2022 against Rs 1,087 billion in June 2021, showing a growth of 17.9 percent. Money market funds dominated the AUMs of the mutual fund industry with the largest share of 52 percent, followed by income funds having a share of 24 percent.
The other significant asset class in the NBFCs are the investment advisors. There are currently 28 entities licensed to offer investment advisory services with a portfolio of Rs 356 billion as on June 30, 2022. The total assets of 22 pension funds managed by 14 Pension Fund Managers (Voluntary Pension Systems) stood at Rs 41.64 billion as on June 30, 2022. This asset class also witnessed a growth of 4.9 percent in the year under review.
The NBFS also includes five Real Estate Investment Trusts (REITs) and 13 REITs Management Companies. As of June 30, 2022, the fund size of REITs was Rs 98.344 billion marking a growth of 81 percent over the previous year’s figure. Another important area in the NBF sector is Private Fund Management. In this context, Private Equity and Venture Capital (PE & VC) investment is poised to take off in Pakistan.
Currently, there are five PE & VC Funds and eight Private Equity Companies operating in Pakistan. The total asset size of the PE & VC funds stood at Rs 10.96 billion as on June 30, 2022, compared to Rs 6.69 billion as on June 30, 2021, registering a growth of 64 percent.
Lending NBFCs are engaged in providing specialized financial services and complement the outreach of banking industry by mobilizing finance, especially in underserved segments. The total assets of companies licensed to undertake lending business, including investment finance companies (investment banks), leasing companies, housing finance companies and non-bank microfinance companies, have increased to Rs 260.65 billion as on June 30, 2022, as compared to Rs 211.41 billion as on June 31, 2021, showing growth of 23.3 percent, the SECP added.
Copyright Business Recorder, 2022
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