In October 1997, MMMFs were permitted to invest in rated corporate bonds and debentures with a residual maturity of up to one year, within the ceiling existing for Commercial Paper (CPs). The minimum lock-in period was also reduced gradually to 15 days, making the scheme more attractive to investors. BIS central bankers’ speeches  1  MMMFs have witnessed phenomenal growth over the period.
SBP has put in place a “Financial Innovation Challenge Fund” under the DFID-funded Financial Inclusion Program (FIP). I am glad to highlight that market has been responding actively to this stimulus. As a result, users’ adoption has started rising at an increasing rate, and is likely to change the landscape of retail banking in Pakistan in near future.