Islamabad (Urdu Point / Pakistan Point News – April 4, 2026) Islamabad Securities and Exchange Commission Pakistan The Securities and Exchange Commission (SECP) has approved the country’s first Sharia-compliant credit risk sharing product, enabling Islamic financial institutions to expand financing to underserved sectors such as small and medium-sized enterprises and agriculture.
The product, developed by the National Credit Guarantee Company Limited (NCGCL), reduces credit risk through a risk-sharing mechanism, while enabling greater access to financing and ensuring compliance with Sharia principles.
The new product provides an alternative to current traditional credit guarantees through a risk-sharing model compatible with Islamic Sharia. Under this structure, participating institutions contribute to a donation-based pooled fund (Tabarru), managed by NCGCL as agent (agent) under an agency arrangement.
Losses due to default are covered by this pool, ensuring true risk sharing without guaranteed returns.
The Securities and Exchange Commission’s Shariah Advisory Committee reviewed and approved the structure, indicating that it complies with basic Shariah principles. The committee also recommended strengthening management and documentation for effective implementation.
This initiative is expected to increase access to financing for micro, small and medium enterprises, agriculture and other priority sectors. It will support financial inclusion, responsible lending and strengthen the Islamic finance ecosystem in Pakistan.
The SEC is actively working to advance Islamic finance in line with the Supreme Court’s directives and the government’s vision to move towards a usury-free financial system, while ensuring financial inclusion, stability and sustainable economic growth.