SECP unveils first ESG Mutual Funds Framework

Pakistan has taken a major step towards sustainable finance as the Securities and Exchange Commission of Pakistan (SECP) has issued the country's first ESG Mutual Funds Framework. The framework enables asset management companies to launch environmental, social and governance (ESG)-focused mutual funds, bringing Pakistan's capital market in line with global sustainable investment practices, according to a statement issued by the SECP on Wednesday. Globally, such investment has grown rapidly, with more than $16 trillion in assets managed under sustainable investment strategies. As investors increasingly seek investments that combine financial returns with responsible business practices, regulators around the world are introducing frameworks to support ESG investing. For Pakistan, the initiative is particularly important as the country remains among the world's most climate-vulnerable natio...