SECP forms working group to develop private pension market.

ISLAMABAD -- The Securities and Exchange Commission of Pakistan (SECP) has formed a Pension and Annuity Working Group (PAWG) to develop the private pension and annuity market in Pakistan.

'The group, having representation of the regulator, asset management companies (AMCs), life insurance companies and the actuarial profession of Pakistan, is assigned to prepare a roadmap to develop the country's private pension and annuity market,' a statement issued by the commission on Friday read.

A developed pension market will help deepen the market for much-needed long-term capital instruments, while the annuity market has been a missing link between the voluntary pension and insurance sector of Pakistan, the SECP stated.

The commission noted that the Voluntary Pension Scheme (VPS) framework that was introduced in 2005 still has a very low uptake from the industry; recorded Rs33 billion as of Oct 2020 in assets under management. This represents only...