Islamabad, August 22, 2025 – The Securities and Exchange Commission of Pakistan (SECP) has unveiled a new category of mutual fund schemes titled “Infrastructure Schemes” under the framework of open-end collective investment schemes.
This initiative aims to channel long-term savings into Pakistan’s infrastructure development sector, offering investors new opportunities while strengthening capital market depth.
According to an SECP statement issued Friday, the move represents a major policy step towards improving the flow of domestic investments into high-priority infrastructure projects. It is also a key milestone under the Fund Management Department’s Roadmap 2025–26, which was discussed at the Mutual Fund Focus Group Session 2025. The proposal went through extensive consultations with the Mutual Funds Association of Pakistan (MUFAP) and other stakeholders to finalize a framework that balances innovation, regulatory clarity, and investor protection.
Addressing Pakistan’s Infrastructure Gap
Pakistan currently faces an infrastructure financing need of nearly USD 15 billion annually, while actual spending stands at just 2.1 percent of GDP compared to global benchmarks of 8–10 percent. By creating a dedicated regulatory category, the SECP aims to highlight infrastructure-focused mutual funds and mobilize significant domestic resources for projects of national significance.
Key Features of the New Framework
Under the new rules, Asset Management Companies (AMCs) can categorize infrastructure schemes as equity, debt, or hybrid funds depending on their investment focus. Eligible sectors include energy, transport, water, sanitation, telecommunications, logistics, hospitals, educational institutions, industrial parks, affordable housing, and tourism-related facilities.
The framework also introduces strict requirements to ensure investor confidence. Minimum fund sizes are set at Rs. 100 million for perpetual schemes, while closed-end schemes require an AMC seed investment of Rs. 25 million for maturities exceeding three years. Additionally, at least 70 percent of net assets must remain invested in infrastructure securities, with any shortfall to be rectified within three months.
Investor-Friendly Measures
To enhance transparency, closed-end schemes must disclose Net Asset Value (NAV) at intervals not exceeding one month. Management fees are capped at three percent annually for equity schemes and 1.5 percent for debt schemes, with hybrid funds following a weighted average. No sales load is permitted, although a contingent load may apply for early redemption.
SECP’s Vision for Capital Market Development
By launching this new category, the SECP intends to provide investors with a clear, regulated pathway to participate in infrastructure development while safeguarding their interests. The initiative not only seeks to close Pakistan’s infrastructure financing gap but also reinforces SECP’s commitment to deepening capital markets and fostering sustainable economic growth.