PHOTO: FILE
ISLAMABAD: The government formally launched the Secured Transactions Registry (STR) on Thursday for registration of security interests/charges created by entities other than companies on their movable assets.
The STR has been established under the Financial Institutions (Secured Transactions) Act, 2016, and operationalised by the Securities and Exchange Commission of Pakistan (SECP). The STR is an electronic register that can be accessed through a dedicated website 24/7. Financial institutions can now file security interests online. Registration process is fully automated and the registry is searchable by general public, free of charge.
Department Head of International Development (DFID) Pakistan Annabel Gerry lauded the efforts of the financial sector regulators. While discussing the importance of this initiative, Shaikh highlighted that micro, small and medium enterprises (MSMEs) play a vital role in the economic development of the country due to their significant contribution in terms of output, exports and employment.
The adviser was optimistic that this initiative would prove to be a game changer by improving access to finance for the MSMEs, agri-borrowers and rural enterprises.
The commencement of the registry will broaden the scope of assets that these underserved segments can offer as a security for availing the finance. On the other hand, this reform will also help banks to expand their lending portfolios. It will contribute towards improving Pakistan’s score on ‘getting credit indicator’, and in particular raise its global ranking on the World Bank’s Doing Business’ index.
Published in The Express Tribune, May 8th, 2020.
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