SECP Pushes to Revive and Modernise Pakistan’s Waqf System for Social Impact

The Securities and Exchange Commission of Pakistan (SECP) has proposed a plan to revive and modernise the centuries-old Islamic Waqf system so it can better support today’s social and economic needs. Waqf is basically an endowment—assets set aside for charitable, religious, or educational purposes—and historically it’s been a game-changer in Muslim societies, funding things like hospitals, schools, and public infrastructure. Think Al-Azhar University in Egypt or the Ottoman Empire’s massive Waqf projects.

While countries like Malaysia, Turkey, and Indonesia have already updated and integrated Waqf into their financial systems with proper laws, Shariah-compliant tools, and professional management, Pakistan is still stuck with outdated methods and no proper legal structure to make it work efficiently.

To fix this, SECP is suggesting that Waqf companies be allowed under the Companies Act 2017 or that existing provincial Waqf laws and NPO rules be updated to allow modern governance models. The concept paper also suggests creating financial services and tools that align with Shariah principles, making the whole system more transparent and effective.

Before making anything official, SECP will be consulting with all the key players. If this plan goes through, it could seriously transform how Pakistan funds education, healthcare, and poverty reduction through Islamic social finance.