The inaugural meeting of the Capital Market Development Council (CMDC) was held on Friday under the chairmanship of Finance Minister Muhammad Aurangzeb, with senior officials from the Securities and Exchange Commission of Pakistan (SECP), State Bank of Pakistan (SBP), and key market stakeholders participating, to review the roadmap for strengthening and expanding Pakistan’s capital markets.
During the meeting, Aurangzeb said that the government is committed to building vibrant and inclusive capital markets that can play a pivotal role in financing economic expansion, broadening investor participation, and advancing the structural reforms underway, read an official statement.
Experts for strengthening capital market cooperation
“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.
Representatives from the SECP, 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 CMDC reviewed the Terms of Reference and the overall roadmap for the capital market development plan and strategy, emphasising the adoption of global best practices and a structured approach to market broadening, deepening and widening.
The Capital Market Development Council is a new body in Pakistan, chaired by Finance Minister Muhammad Aurangzeb, aimed at streamlining and developing capital market affairs in the country
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.
SBP governor urges enhanced transparency at capital markets to bridge credit gaps
The meeting also examined the requirements for cross-border integration of capital markets, alignment of market technologies, regulatory modernisation and the need to incentivise issuers to raise funds through both debt and equity capital markets.
The finance minister emphasised 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 the capital market 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 penalising them.
The chair also instructed the council’s secretariat to dovetail the recently announced three-tiered digitisation initiative 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 action plans 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, according to the statement.
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