Pakistan’s NBFI assets hit PKR 7T due to mutual funds boom

The total assets of Pakistan’s non-bank financial institutions (NBFI) increased by 21% over six months to PKR 6.84 trillion by December, 2025, according to a report released by the Securities and Exchange Commission of Pakistan.

The total assets stood at PKR 5.635 trillion on June 30, 2025, the regulator said, citing broad-based expansion across fund management and lending segments amid rising investor confidence and continued efforts to promote financial inclusion.

The fund management sector recorded 17% growth during the July-December period. Mutual funds remained the largest sub-sector, with assets under management of PKR 4.5 trillion, accounting for 66.3% of total industry assets.

The number of funds and plans increased from 369 to 409.

Investments by mutual funds remained diversified, with 44% allocated to money market funds, 23% to income funds and 14% to equity funds, the report said.

Investor participation expands

The number of mutual fund investor accounts rose to 845,000 by the end of December, an 8% increase since June 2025. The figure has doubled since December 2022, signaling growing retail engagement in capital market instruments.

Participation in voluntary pension schemes climbed sharply as well, with the number of accounts reaching 143,154 as of Dec. 31, 2025. That represents a 30% increase over six months and a 170% surge since December 2022.

The lending segment of non-bank financial companies posted particularly strong performance, with assets jumping 65% in six months to PKR 824 billion.

Shariah-compliant assets across the sector totaled PKR 2.47 trillion, representing 36% of overall industry assets, the regulator said.

The number of registered non-bank financial companies and Modaraba entities increased to 185 by the end of December, up from 174 in June 2025, underscoring continued expansion in the sector.

The SECP said it remains focused on fostering a resilient, transparent and inclusive non-bank financial sector to support economic stability, mobilize savings and facilitate sustainable growth within Pakistan’s financial system.