The Securities and Exchange Commission of Pakistan (SECP) has underlined the importance of stronger linkages between the country’s banking sector and capital markets as a driver of long-term financial stability and economic growth. Speaking at a high-level event titled “Unlocking Capital Market Potential for Banks – Driving Capital Market Growth Together,” SECP Chairperson Akif Saeed welcomed Senator Muhammad Aurangzeb, the Federal Minister for Finance and Revenue, along with the Governor of the State Bank of Pakistan and leading professionals from the financial and capital market ecosystem.
Chairperson Saeed emphasized that the growth of Pakistan’s economy hinges on enhanced cooperation between regulatory bodies, banks, and the capital market. He stated that unlocking the potential of these markets requires collaborative efforts aimed at boosting investor confidence, improving liquidity, and modernizing financial frameworks.
In his address, the SECP chief highlighted several recent reforms undertaken to energize and transform the capital market. Among these is the issuance of Government of Pakistan Ijarah Sukuk (GIS) through the Pakistan Stock Exchange (PSX), a step seen as vital in broadening the range of Shariah-compliant investment options for both institutional and retail investors. This initiative also supports the government’s financing needs while fostering financial inclusion.
Another critical area of reform is the strengthening of the voluntary pension system. By encouraging broader participation and offering more attractive products, the SECP aims to address long-term savings and retirement security challenges. This reform is aligned with the global trend of promoting private savings schemes to complement state-funded pension systems.
The SECP has also taken significant strides toward adopting a T+1 settlement cycle, which will reduce risk exposure, increase efficiency, and align Pakistan with global best practices in trading and settlement. Faster settlements are expected to boost investor confidence and attract new participants to the market.
In addition, the regulator is pursuing a consultative reform approach, engaging closely with stakeholders to identify market needs and address systemic challenges. This collaborative method ensures that reforms are practical, effective, and inclusive of industry input.
Digital transformation remains another cornerstone of SECP’s strategy. With a focus on leveraging the latest technologies, the commission is actively working on initiatives that enhance transparency, streamline regulatory processes, and reduce costs. By prioritizing digital adoption, SECP is laying the groundwork for a more accessible and efficient market ecosystem.
The public offering regime has also been revamped to reduce both listing costs and timelines, making it easier for companies to access capital through equity markets. This step is expected to encourage more businesses to go public, broaden the investor base, and strengthen market depth.
The event provided a platform for dialogue between regulators, policymakers, and industry players. Participants discussed how to align banking operations with capital market mechanisms in order to create a more integrated financial system. The presence of senior figures from the Ministry of Finance, State Bank of Pakistan, and the private sector underscored the collective recognition of the role capital markets can play in advancing Pakistan’s economic resilience.
Chairperson Saeed concluded by stressing that collaborative efforts are the key to unlocking Pakistan’s true capital market potential. With sustained reforms, integration with the banking sector, and a focus on technology-driven efficiency, the SECP is positioning the capital market as a central pillar in the country’s financial architecture.