SECP rejoins IOPS as governing member to strengthen pension sector reforms

November 22, 2024 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has re-joined the International Organization of Pension Supervisors (IOPS) as a Governing Member, marking a pivotal step in Pakistan’s commitment to strengthening the pension sector.

This membership renewal underscores SECP’s focus on aligning with global standards to foster sustainable retirement income solutions for the nation.

SECP was a founding member of IOPS when it was established in 2004 until 2016, contributing significantly to the organization’s development and mission to advance effective supervision of private pension systems worldwide.

The decision to rejoin comes at a transformative time as Pakistan adopts defined contribution (DC) pension schemes in the public sector, requiring enhanced governance, global alignment, and technical expertise.

As a Governing Member of IOPS, SECP will gain access to a global platform that facilitates collaboration among members representing 79 jurisdictions.

This engagement will enable SECP to adopt radical guidelines, improve pension fund governance, and build institutional capacity for effective supervision.

Additionally, the membership enhances SECP’s ability to align Pakistan’s voluntary pension system with international best practices, bolstering investor confidence and attracting investment into the sector.

SECP’s renewed collaboration with IOPS coincides with the increasing adoption of pension reforms at the federal and provincial levels, where innovative DC pension schemes are being implemented under the Voluntary Pension System framework.

With its membership restored, SECP is poised to serve as a central authority for pension reforms, fostering communication with stakeholders and driving efforts to create a transparent, secure, and sustainable pension system.

This move signifies SECP’s steadfast commitment to ensuring financial security for retirees and strengthening Pakistan’s economic resilience.

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