Regulatory Alerts2026-06-24
Added · Updated
Circular 12 of 2026 - Framework for ESG Mutual Fund
The Securities and Exchange Commission of Pakistan allows Collective Investment Schemes to be categorized as ESG Schemes, requiring a minimum of 50% of net assets to be invested in instruments aligned with specific ESG strategies such as negative screening, integration, best-in-class, or impact investing. Equity-oriented schemes must invest in companies aligned with SECP ESG Disclosure Guidelines or included in the PSX Sustainability Index, while debt-oriented schemes must invest in green, social, or sustainability-linked bonds. Asset Management Companies must approve and periodically review their ESG assessment methodologies, maintain quarterly average compliance with the 50% threshold, and disclose strategy details in offering documents and annual reports.
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