ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has released a concept paper aimed at reviving and modernizing the institution of Waqf to meet current socio-economic demands. The paper highlights the historical role of Waqf in funding education, healthcare, and social welfare, and examines its integration into contemporary financial systems.

The concept paper draws on the successful adaptation of Waqf in countries such as Malaysia, Turkey, and Indonesia, where regulatory frameworks and innovative governance models have enhanced its function as a socio-economic tool. In contrast, Pakistan’s Waqf system struggles with outdated management and a lack of comprehensive regulation.

To address these challenges, the SECP proposes several strategies, including the incorporation of Waqf into corporate structures as Waqf companies and the development of Islamic financial instruments tailored for these entities. These initiatives aim to complete the Islamic finance ecosystem in Pakistan and maximize the social impact of Waqf.

The paper also suggests potential amendments to provincial Waqf laws, the Companies Act, 2017, and NPO Regulations to facilitate the formation of Waqf companies under existing legal frameworks. The SECP intends to collaborate with industry stakeholders to refine these proposals before implementing regulatory changes.

The SECP envisions that a modernized Waqf system will foster sustainable Islamic social finance institutions, contributing to shared prosperity by funding social and welfare initiatives. The SECP invites feedback on the concept paper, available on its website, until May 4, 2025.