Page 89 - CMA Journal (Jul-Aug 2026)

REGULATORY Other Features

O T H E R F E A T U R E S
NEWS

By: ICMA Research and Publications Department

By ICMA Research and Publications Department
SBP Published Annual Financial institutional investment, and bolster infrastructure and
Statements for FY2026 industrial growth, as part of SECP's comprehensive
reforms in this area.
SBP has published its nancial statements for the year
ending June 30, 2026, along with the auditor's report, SECP Proposes New Law to Unlock
on its website. These documents have also been sent to Funding for Startups
the federal government and Parliament as required by
the State Bank of Pakistan Act, 1956. For the year, the SECP has presented a draft Venture Capital (VC) Bill to
SBP reported a net pro t of PKR 1,990 billion, with a the Board of Investment (BOI) for public consultation.
surplus pro t of PKR 1,932 billion remitted to the federal The Bill aims to enhance access to risk capital, attract
government after accounting for necessary investment, and support startups, thereby contributing
appropriations. to economic growth. Developed under a Federal
Government initiative, it addresses the current
SBP Designates UBL, HBL & NBP as limitations in venture capital access in Pakistan's startup
Domestic Systemically Important Banks and innovation sectors. The proposed legislation
for 2026 includes a transparent framework for VC funds,
featuring light-touch licensing and clear governance
SBP has identi ed United Bank Limited (UBL), Habib standards. SECP Chairman Dr. Kabir Ahmed Sidhu
Bank Limited (HBL), and National Bank of Pakistan (NBP) emphasized that the law aims to channel private capital
as Domestic Systemically Important Banks (D-SIBs) for into emerging businesses while minimizing regulatory
2026, following an assessment based on their nancials barriers. Public consultations with industry stakeholders
as of December 31, 2025. Banks are evaluated on size, will follow before the Bill is legislated.
interconnectedness, substitutability, and complexity to Pakistan & IMF Di er Over Direct
determine their systemic importance. Starting March
31, 2027, these banks will face enhanced supervisory Contracts to SOEs Under Proposed PPRA
and additional Common Equity Tier-1 (CET-1) capital Rules 2026
requirements: UBL [2.5%], HBL [1.5%], and NBP [1.0%].
Additionally, branches of Global Systemically Important Pakistan and the IMF are in con ict over the proposed
Banks (G-SIBs) in Pakistan must maintain extra CET-1 Public Procurement Regulatory Authority (PPRA) Rules
capital as per the Financial Stability Board. This 2026, which aim to enhance transparency and
designation is part of SBP's e orts to bolster banks' accountability in public procurement, replacing the
resilience and support nancial stability and economic outdated 2004 framework. The IMF allows direct
growth. contracting with state-owned enterprises (SOEs) only
under exceptional circumstances. Additionally, SOE
SECP Establishes Corporate Debt Market subcontracting is limited to 40% of project value to
Desk prevent unfair competition. The rules introduce stricter
eligibility requirements for contractors and enable
SECP has launched a Corporate Debt Market Desk to agencies to blacklist bidders for corrupt practices.
enhance the corporate debt market and facilitate Procurements over PKR 700,000 must follow
capital raising through debt instruments. Directed by competitive bidding, with oversight by federal
Finance Minister Senator Muhammad Aurangzeb, the secretaries.
initiative aims to provide simpler, faster, and
cost-e cient debt issuance. The Desk will assist with
public o erings, private placements, PSX listings, and
Shariah-compliant instruments. Additionally, a
Corporate Debt Market section on the SECP website
o ers legal frameworks and guidance. Chairman Dr.
Kabir Ahmed Sidhu emphasized that a robust corporate
debt market would diversify nancing, attract

ICMA’s Chartered Management Accountant, Jul-Aug 2026 87