Minister for Finance and Revenue, Senator Muhammad Aurangzeb, on Wednesday, termed the launch of the Capital Market Development Fund (CMDF) a “milestone” and urged coordinated reforms to deepen, broaden and modernize Pakistan’s capital markets.
Addressing the CMDF signing ceremony organized by the Securities and Exchange Commission of Pakistan (SECP), the finance minister said strong capital markets are essential for sustainable economic growth, mobilizing savings and unlocking long-term financing for key sectors.
Aurangzeb said the initiative reflects a collective resolve across institutions rather than any single entity, emphasizing that “robust capital markets are engines of sustainable growth” that enable capital formation, risk-sharing and financing for infrastructure and startups.
He outlined four key areas of focus, including the broader capital market framework, the balance between equity and debt markets, the regulatory role of SECP, and the importance of partnerships among stakeholders.
Linking economic strategy to recent global and regional developments, the minister said Pakistan must draw lessons from ongoing challenges. He stressed that commercial reserves alone are insufficient, calling for the creation of strategic reserves to strengthen economic resilience.
He also underlined the need to accelerate investment in renewable energy, including solar, wind and hydropower, adding that capital markets would play a crucial role in financing this transition.
Highlighting the importance of self-reliance, Aurangzeb emphasized building indigenous economic capacity, noting that stronger fiscal buffers could reduce dependence on international assistance during crises such as floods.
“The power of macroeconomic stability lies in our ability to respond to shocks with our own resources,” he said, linking economic strength with national and energy security.
The minister noted that Pakistan must do away with over-reliance on the banking sector, calling for greater use of capital markets by both the public and private sectors. He acknowledged progress in the equity market, citing the entry of more than 220,000 new investors over the past two years, largely driven by young, tech-savvy participants.
However, he expressed concern over the underdevelopment of the debt capital market, saying it had “gone into reverse gear” over the years and requires regulatory reforms, improved ease of doing business, and taxation adjustments to revive corporate bond activity.
Aurangzeb also stressed the importance of financial literacy and investor education, urging authorities to focus outreach efforts on Gen-Z and younger investors who are increasingly shaping market trends through digital platforms.
On regulation, he described SECP’s role as a “fine balancing act” between expanding market participation and ensuring investor protection, fiscal discipline and risk management. He called for simplifying processes and strengthening institutional capacity through reforms in people, processes and technology.
The finance minister emphasized that no single institution can drive reform alone, highlighting the importance of collaboration among regulators, government bodies, investors and private sector stakeholders.
He reiterated that the government’s role is to provide an enabling environment, while the private sector must lead economic growth, adding that stronger capital markets will be critical in mobilizing domestic resources and supporting long-term development. Aurangzeb said the CMDF initiative would serve as a catalyst in unlocking financing, strengthening market infrastructure and advancing Pakistan’s economic transformation.