Regulatory Alerts2026-07-01
Added · Updated
Framework for ESG Mutual Fund Categorization
The Securities and Exchange Commission of Pakistan introduces a new "ESG Scheme" category for open-end Collective Investment 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 apply objective, board-approved assessment methodologies to listed companies, while debt-oriented schemes must invest the qualifying portion in green, social, or sustainability-linked bonds. Asset Management Companies are mandated to disclose detailed ESG strategies, screening criteria, and risks in offering documents, include Fund Manager commentaries in annual reports, and maintain at least 10% of net assets in cash or near-cash instruments.