SECP pushes big reforms to drive fintech & inclusion

November 14, 2025 (MLN): Significant amendments to the lending framework of the Non-Banking Finance Companies (NBFC) Regulations, 2008 have been notified, aiming to accelerate fintech-driven lending, expand access to finance, and strengthen consumer protection across Pakistan’s financial sector.

The updated regulatory regime eases experience requirements for founders and CEOs of lending NBFCs, opening the door for young entrepreneurs and startups to participate in the regulated digital lending ecosystem.

A simplified Borrower Factsheet has also been rolled out to provide greater clarity on loan terms, pricing, and borrower obligations, ensuring transparent and efficient customer onboarding.

A key reform includes the introduction of a new category Credit Guarantee Institution (CGI) to enhance credit access for underserved segments. CGIs will offer credit guarantees to lenders, encourage risk-sharing, and operate under enhanced exposure limits and sustainability standards for stronger risk management.

The peer-to-peer (P2P) lending landscape has also undergone restructuring, incorporating securitized lending options, strengthened prudential limits, and stricter disclosure requirements. These changes aim to ensure responsible platform operations, safeguard lenders, and improve transparency in digital fund flows. Additional measures reinforce the financial sustainability and governance of P2P service providers.

For non-banking microfinance companies (NBMFCs), loan size limits for microenterprise and housing finance have been doubled from Rs1.5m to Rs3m.

The definition of microenterprise has been revised to broaden outreach and enable small businesses to obtain higher-value credit facilities.

Governance standards have been strengthened through a new requirement mandating at least two female directors on NBMFC boards, including one independent female director, to promote gender diversity and inclusive leadership.

Credit reporting has also been tightened, with mandatory reporting to Credit Bureaus now applicable to all NBFCs. This measure supports comprehensive credit history development, better borrower assessments, and improved credit discipline across the market.

These reforms collectively advance the vision for a responsible, transparent and technology-enabled lending ecosystem, prioritizing financial inclusion, investor protection, and long-term financial sector resilience.

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