Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb said here on Friday that the government was committed to building vibrant and inclusive capital markets that could play a pivotal role in financing economic expansion, broadening investor participation, and advancing the structural reforms underway.
“Developing a modern, integrated, and investor-friendly capital market ecosystem is a key national priority, essential for improving access to finance, promoting savings, deepening market activity, and strengthening Pakistan’s long-term economic resilience,” he said while chairing the inaugural meeting of the Capital Market Development Council (CMDC) to review the roadmap for strengthening and expanding Pakistan’s capital markets. The meeting brought together senior leadership from key financial institutions, corporate sector, regulators, and government departments.
Representatives from the Securities and Exchange Commission of Pakistan (SECP), State Bank of Pakistan (SBP), Pakistan Banks Association (PBA), Pakistan Stock Exchange (PSX), Central Depository Company (CDC), National Clearing Company of Pakistan Limited (NCCPL), Pakistan Business Council (PBC), and the Finance Division participated in the meeting.
The Council reviewed the Terms of Reference and the overall roadmap for capital market development plan and strategy, emphasising the adoption of global best practices and a structured approach to market broadening, deepening and widening. Discussions focused on strengthening four core areas, including enhancing participation of retail and institutional investors; developing diversified investment products tailored to investor needs; improving facilitation for intermediaries including banks, brokers, and mutual funds; amongst others, and creating incentives for investors and issuers, including measures for cross-border listings, collaborations, and wider market integration. The meeting also examined the requirements for cross-border integration of capital markets, alignment of market technologies, regulatory modernization and the need to incentivize issuers to raise funds through both debt and equity capital markets.
Participants reiterated the importance of building high-liquidity, dynamic, and transparent price-discovery mechanisms to enhance the contribution of capital markets towards national economic growth.
The Finance Minister emphasized the government’s commitment to creating vibrant and well-functioning capital markets capable of supporting issuers in raising capital and offering investors secure and attractive investment avenues.
He noted that structural reforms currently underway are contributing to stronger performance in capital markets and stressed the need for both the government and the private sector to make fuller use of the debt capital market.
The Minister urged the council to identify and remove existing bottlenecks that inhibit private sector participation, while highlighting the central role of the capital market in connecting entities that require capital with those possessing savings, through efficient and transparent issuance of equity and debt instruments.
The meeting also reviewed regulatory, taxation, and incentive frameworks, including improvements in regulatory oversight, incentives to encourage more companies to list, and tax policies to support product development and market competitiveness.
The Minister noted that taxation remains a key factor affecting capital market attractiveness and directed that the Tax Policy Office, SBP, SECP, DMO, and Finance Division work jointly to review capital market taxation, issuer-side tax incentives, and measures to encourage wider listings and greater transparency. Emphasis was placed on rewarding compliant and transparent companies rather than penalizing them.
The Chair also instructed the Council’s Secretariat to dovetail the recently-announced three-tiered Digitization initiative by the government of Pakistan into the capital market development roadmap. It was agreed that dedicated working groups would be established across priority areas and tasked with preparing Key Performance Indicators and Plans of Action within the next two weeks. The Council will receive quarterly progress reports, and meetings will be held at least once each quarter to monitor implementation and outcomes. These efforts aim to establish a dynamic, flexible, and high-liquidity capital market ecosystem that channels savings into productive investment, supports economic growth, and strengthens Pakistan’s overall financial stability.