Just as there is room for growth in the financial sector as a whole, there are untapped opportunities specifically in Pakistan's non-banking financial sector. According to a report by the Securities and Exchange Commission of Pakistan, the non-banking financial sector, excluding the insurance sector, accounts for only 4.9 percent of the financial sector's total assets. As USAID works with key stakeholders through our economic growth projects, we look forward to seeing this number rise in the near future.
USAID, through its partnership with the Securities and Exchange Commission of Pakistan, sees itself as a facilitator to help achieve the overarching goal of expanded and efficient allocation of capital. The transfer of capital from savings to businesses will propel economic growth and improve Pakistanis' lives.
The more efficiently and effectively capital is allocated, the more progress Pakistan will make in meeting international financial milestones and emerging as a formidable economic force in the global markets. Non-banking financial institutions are a crucial piece in the financial puzzle, as they help the country's small and medium enterprises meet their financial and growth needs.
The financial sector must be expanded to improve the mobilisation of resources and to increase SMEs' ability to access debt and equity markets. To support the growth of the SME sector, the cost of borrowing needs to be lowered, skills must be broadened across the financial arena, and enterprise networks need to be expanded to bring together various interests. We must all work together to achieve these goals. Pakistan has already made significant progress toward building a strong financial sector. Many indicators show Pakistan's mutual funds market is on an upward trajectory. Additionally, the Pakistani equity market has grown significantly, and its liquidity has greatly improved.
USAID's Financial Markets Development project aims to strengthen the Government of Pakistan's capacity to support the full maturity spectrum of debt security issuances. Meanwhile, our Pakistan Private Investment Initiative project aims to strengthen private equity finance, a non-bank financing model for small and medium enterprises. The United States, through USAID, is proud to work with the Government of Pakistan to strengthen the financial sector and increase the private sector's access to finance.