ISLAMABAD: The government has made it mandatory on financial institutions, retailers, telecom service providers, utility companies and others to provide all pertinent data to the licensed private credit bureaus regulated by the State Bank of Pakistan (SBP).
The measure has been taken as part of government’s reforms aimed at ensuring ease of doing business (EODB) in Pakistan. Following the collection of information and data, the credit bureaus will be able to offer value-added services to different enterprises and businesses. The government is set to release a formal notification in this regard following a nod from the Law Division and the cabinet.
Meanwhile, the SBP has issued credit bureau licences to two private companies, which will begin operations after completion of formalities and compliance with the regulations laid down in the Credit Bureau Act 2015.
The concept, procedure and operational scope of private credit bureaus were introduced through the Finance Division’s Credit Bureau Act issued on August 19, 2015.
The Act also introduced the procedure for establishing the bureaus and the legal regulatory framework relating to their functions. Subsequently, the central bank released licensing standards as well as rules and regulations for the credit bureaus based on which licences were issued to Data Check Limited and Equalities Information Services Limited.
After the completion of formalities, the two companies will start operations and gather data from financial institutions, banks, retailers, telecom operators and utility companies based on which businesses and enterprises may be offered an extensive stream of value-added services.
These services would include credit-scoring, fraud detection and prevention, portfolio monitoring, debt collection and marketing.
