ISLAMABAD: Finance Minister Muhammad Aurangzeb has directed the Securities and Exchange Commission of Pakistan (SECP) to accelerate the development of capital market in order to broaden financing options and strengthen investor confidence.
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The directive was issued during a meeting with the SECP’s new leadership, led by Chairman Kabir Ahmed Sidhu and Commissioner Ali Farid Khawaja, who called on the finance minister on Friday. Senior officials from the Finance Division responsible for debt management, capital market development and regulatory coordination were also in attendance.
New @SECPakistan Leadership Calls on Finance Minister
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting at the Finance Division with the new leadership of the Securities and Exchange Commission of Pakistan (SECP), led by Chairman Kabir Ahmed… pic.twitter.com/QAoUGHTuAS
— Ministry of Finance, Government of Pakistan (@Financegovpk) January 30, 2026
The finance minister emphasised the need for aligned priorities to deepen capital markets, diversify financing sources for both the public and private sectors, and enhance investor confidence through efficient regulation, modern market infrastructure and coordinated policy action.
Mr Aurangzeb highlighted the government’s shift towards an integrated reform framework through the Capital Markets Development Council. He said the council’s finalised terms of reference aim to move away from institution-specific silos and towards a system-wide approach to market development.
He noted that the objective was to build on progress already achieved across various market institutions while addressing gaps that require regulatory reforms, legislative support and improved inter-agency coordination.
The development of debt capital markets emerged as a key focus of the discussion. The finance minister stressed the importance of reducing excessive reliance on the banking sector and expanding participation by insurance companies, asset managers, pension funds and retail investors, in line with sound asset-liability management practices.
Officials from the Finance Division shared updates on efforts to strengthen domestic debt management, including improvements in front-, middle- and back-office functions and liability management operations. They said the next phase would require close collaboration with the SECP to enhance market depth and operational efficiency.
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Participants also identified high intermediation costs as a constraint, agreeing that streamlining market architecture, improving issuance processes and strengthening secondary markets would be critical for sustainable growth. Faster digital investor onboarding and risk-based know-your-customer processes were highlighted as essential to improving liquidity.