"Financial leasing companies engage in financing the purchase of concrete assets. Though leasing company is the legal owner of the goods, the ownership and possession is effectively conveyed to the lessee, who earns all benefits, costs, and risks linked to ownership of the assets.”
In Pakistan, leasing is a licensed activity which is performed either by commercial banks or by non-banking finance companies (NBFCs). Commercial banks are regulated by the State Bank of Pakistan (SBP) whereas NBFCs are regulated by the Securities & Exchange Commission of Pakistan (SECP) under regulatory framework provided through Companies Ordinance, 1984. A NBFC with a license for undertaking leasing is called a leasing company. A NBFC with leasing license is required to invest at least 70% of its assets in the business of leasing.