Govt Moves to Strengthen Capital Markets with New Development Council
The government of Pakistan has taken an significant step toward improving and increasing the country’s capital markets by holding the first meeting of the Capital Market Development Council (CMDC). The meeting took place on Friday and was chaired by Finance Minister Muhammad Aurangzeb. Senior officials from the SECP, SBP, and extra major market stakeholders attended the meeting to review the roadmap for consolidation Pakistan’s capital market structure. The government aims to create a more vibrant, modern, and inclusive financial system that can provision financial growth and wider investor contribution.
Quick Information Table
| Program / Body | Start Date | End Date | Assistance / Objective | Application Method |
|---|---|---|---|---|
| Capital Market Development Council (CMDC) | Started with inaugural meeting | Ongoing | Strengthen and develop capital markets in Pakistan | Not applicable (Government Council) |
Purpose of the Capital Market Development Council
The Capital Market Development Council has been recognized to streamline the growth of Pakistan’s capital markets. It is a new body chaired by Finance Minister Muhammad Aurangzeb, who elucidated that the administration needs capital markets to play a key role in financing economic expansion, supporting savers, and refining overall market presentation.
Government’s Commitment to Stronger Capital Markets
During the meeting, the finance minister said that building a contemporary and combined capital market bionetwork is a national priority. According to him, strong capital markets are vital for endorsing investments, refining access to finance, deepening market activities, and enhancing Pakistan’s long-term economic constancy.
Participation in the Inaugural Meeting
Representatives from several important institutions took part in the Govt Moves to Strengthen Capital Markets with New Development Council CMDC meeting. These included:
- 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)
- Finance Division
Their presence reflects the government’s aim to strengthen coordination across all key market stakeholders.
Review of Strategy and Roadmap
Terms of Reference and Development Plan
The CMDC reviewed the Terms of Reference and the overall roadmap for capital market development. The council stressed the importance of adopting global best practices and using a structured strategy that can help broaden and deepen Pakistan’s markets.
Focus Areas for Improvement
Govt Moves to Strengthen Capital Markets with New Development Council four major focus areas:
- Increasing participation from retail and institutional investors
- Developing a wider range of investment products
- Improving support for intermediaries like banks, brokers, and mutual funds
- Creating incentives for investors and issuers, including options for cross-border listings and wider market integration
Cross-Border Integration and Regulatory Modernisation
The meeting also examined what is needed for cross-border market integration. Members discussed the alignment of market technologies, regulatory updates, and incentives that would encourage companies to raise funds through both debt and equity markets.
The finance minister highlighted the importance of ongoing structural reforms that are already improving market performance. He urged stronger use of the debt capital market by both the government and the private sector.
Removing Bottlenecks and Improving Transparency
The finance minister stressed the need to remove all hurdles that stop private-sector participation. He explained that capital markets must efficiently connect companies that need capital with investors who have savings. This can only happen through transparent processes and effective issuance of equity and debt instruments.
Taxation and Regulatory Framework
The meeting reviewed taxation, regulatory changes, and incentive structures. The minister noted that taxation is a major factor affecting the capital market. He instructed the Tax Policy Office, SBP, SECP, DMO, and Finance Division to work together to review market taxation, issuer incentives, and measures that can encourage more listings and improve transparency.
He emphasized rewarding compliant and transparent companies instead of penalising them.
Digitisation and Future Roadmap
The finance minister also directed the council’s secretariat to include the three-tier digitisation initiative in the capital market development roadmap.
Dedicated working groups will be formed to prepare KPIs and action plans within the next two weeks. The council will receive quarterly progress reports, and meetings will be held at least once every quarter to monitor results.
Conclusion
The Govt Moves to Strengthen Capital Markets with New Development Council has taken a major step near modernising and strengthening Pakistan’s capital markets through the formation of the CMDC. With participation from top financial organizations and a strong focus on reforms, the goal is to build inclusive, efficient, and investor-friendly markets. The roadmap will be closely checked through regular progress reports, ensuring that Pakistan’s capital markets grow in a organized and sustainable way.