Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired the first-ever meeting of the Capital Market Development Council (CMDC) at the Finance Division today, marking a key step in Pakistan’s efforts to strengthen its capital market ecosystem. The council, composed of leadership from SECP, SBP, PSX, PBA, CDC, NCCPL, PBC, and the Finance Division, convened to review strategic initiatives aimed at fostering investor-friendly and dynamic capital markets.
During the meeting, Minister Aurangzeb reiterated the government’s commitment to building inclusive capital markets capable of financing economic growth, attracting savings, deepening market activity, and supporting long-term financial resilience. He emphasized that a robust capital market not only provides investment opportunities but also channels funds into productive sectors, fueling sustainable economic expansion.
The discussion centered on several priority areas for the council. Expanding retail and institutional investor participation was highlighted as a central goal, with measures to enhance accessibility and engagement across diverse investor groups. The development of diversified investment products, including innovative debt and equity instruments, was identified as another critical initiative to attract a wider range of participants and stimulate market activity.
Market intermediaries were also a focus, with the council exploring improvements in facilitation and operational efficiency to ensure smoother transactions and more reliable service delivery. Additionally, incentives for issuers, including mechanisms to support cross-border listings, were discussed as a means to encourage transparency, compliance, and broader market integration. Regulatory modernization and alignment with technology-driven market practices were highlighted as essential steps to ensure the capital market remains competitive and resilient in a digital age.
Minister Aurangzeb also underscored the importance of removing bottlenecks that limit private-sector participation. He called for a comprehensive review of capital market taxation and issuer-side incentives, emphasizing policies that reward compliant and transparent companies while promoting long-term investor confidence. These measures are expected to strengthen the overall integrity and efficiency of Pakistan’s financial markets.
Following the meeting, dedicated working groups were assigned the responsibility of developing key performance indicators (KPIs) and actionable plans within two weeks. These groups will conduct quarterly reviews to track progress and ensure that reforms are implemented effectively, providing accountability and transparency in the council’s initiatives.
The formation of the CMDC and the outlined strategies aim to establish a high-liquidity, integrated capital market ecosystem. By focusing on investor participation, product innovation, regulatory modernization, and operational improvements, the council seeks to create a market environment where savings are efficiently mobilized and directed toward productive investment.
This initiative represents a significant step toward modernizing Pakistan’s capital markets and leveraging technology-driven solutions to support economic growth. By strengthening the collaboration between government agencies, financial institutions, and market participants, the CMDC is positioned to enhance Pakistan’s investment landscape and provide a more attractive, resilient, and accessible capital market for domestic and international investors.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.