ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has unveiled a set of initiatives aimed at empowering women and enhancing consumer protection in the non-banking microfinance sector. These new measures require microfinance companies to adhere to consumer protection principles and report gender-disaggregated data while also participating in gender sensitization trainings.

According to a statement by Securities and Exchange Commission of Pakistan, the initiatives are designed to promote transparency and inclusivity within the sector. One of the key requirements is for all non-banking microfinance companies (NBMFCs) to report gender-disaggregated data and complaints through the SECP’s ESG Sustain Portal. This will enable SECP to better understand the experiences of female borrowers, identify trends, and address disparities.

Another central aspect of the new measures is the introduction of comprehensive consumer protection principles. These emphasize the need for transparent disclosures, ensuring that borrowers, particularly women, have a clear understanding of loan terms and conditions. Additionally, effective grievance redressal mechanisms are mandated to provide consumers with a clear pathway to address concerns or complaints.

To further support these initiatives, SECP has mandated gender sensitization training for all NBMFC staff, including board members and senior management. This training is intended to equip staff with the necessary skills to interact with female clients respectfully and sensitively, thereby fostering a supportive environment for women seeking microfinance services.

These initiatives are seen as a significant step towards empowering women within the microfinance sector and promoting greater financial inclusion in Pakistan. SECP anticipates that these measures will contribute to a more equitable and transparent microfinance ecosystem in the country.