Islamabad: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has reaffirmed the government's commitment to developing vibrant, inclusive, and investor-friendly capital markets capable of driving economic expansion, mobilising savings, and accelerating the structural reforms underway.
He made these remarks while chairing the inaugural meeting of the Capital Market Development Council (CMDC) at the Finance Division. The meeting brought together senior 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.
The Council reviewed its Terms of Reference and examined the broader roadmap for strengthening Pakistan's capital markets. Emphasis was placed on adopting global best practices and pursuing a structured approach to broadening, deepening, and widening market activity.
Key areas under discussion included enhancing retail and institutional investor participation; developing diversified, investor-centric products; improving facilitation for intermediaries such as banks, brokers, and mutual funds; creating incentives for issuers and investors; and promoting cross-border listings and regional market integration. The need for regulatory modernization, technology alignment, and measures to encourage issuers to raise funds through both equity and debt markets was also highlighted.
Participants underscored the importance of building high-liquidity, transparent, and efficient price-discovery mechanisms to enhance the contribution of capital markets to national economic growth.
The Finance Minister noted that ongoing structural reforms have strengthened market performance and urged both government and private sector entities to make optimal use of the debt capital market. He called for the removal of bottlenecks that restrict private sector participation and emphasised the central role of capital markets in connecting capital-seeking businesses with savers through transparent issuance of equity and debt instruments.
The meeting also reviewed taxation, regulatory frameworks, and incentives aimed at encouraging listings, improving oversight, and supporting market competitiveness. Senator Aurangzeb directed the Tax Policy Office, SBP, SECP, DMO, and Finance Division to jointly assess capital market taxation, issuer-side incentives, and measures to promote transparency and wider listings. He stressed that compliant and transparent companies should be rewarded rather than penalised.
The Minister instructed the Council's Secretariat to integrate the government's newly announced three-tier Digitization initiative into the capital market development strategy.
It was agreed that dedicated working groups would be formed across priority sectors to prepare Key Performance Indicators and Plans of Action within two weeks. The Council will receive quarterly progress reports, with meetings scheduled at least once every quarter to review implementation.
These initiatives aim to build a modern, dynamic, and high-liquidity capital market ecosystem that channels savings into productive investment, strengthens Pakistan's financial stability, and enhances long-term economic resilience.