We’ve advised on the banking and financial aspects of a proposed “Gold Bank” model in Pakistan. This innovative mandate involved the acceptance of gold as an investable asset, the issuance of investment instruments, profit-sharing returns, and gold-backed lending.
The firm’s role included a comprehensive assessment of licensing boundaries under Pakistan’s banking and financial services framework. We analyzed whether the proposed activities would constitute deposit-taking, investment solicitation, or banking business requiring formal authorization from the State Bank of Pakistan. The team further explored alternative regulatory pathways, including Non-Banking Finance Company (NBFC), Modaraba Management Company, and investment company structures. The matter was particularly significant due to the regulatory implications of using the term “bank,” the quasi-deposit-taking characteristics of the model, and the strict regulatory perimeter governing banking activities in Pakistan.
ABS & Co provided detailed advisory on the permissibility of accepting gold as an asset for investment or financing purposes, as well as on profit-sharing mechanics, custody arrangements, and gold-backed lending features. This engagement underscores the firm’s capability in navigating complex regulatory landscapes for pioneering financial products and institutional models.
