The State Bank of Pakistan (SBP) has emphasized the urgent need for regional cooperation and innovation to establish integrated capital markets across Asia, capable of driving investment, strengthening economic resilience, and fostering sustainable development. This call was made during the inaugural International Capital Market Conference 2025 held in Karachi, which was hosted by the Securities and Exchange Commission of Pakistan (SECP).
Governor SBP, Jameel Ahmad, delivered the keynote address at the conference, highlighting that the challenges facing today’s economies cannot be addressed by individual countries alone. Speaking under the theme “Regional Integration and Innovation in Capital Markets: A New Era of Cooperation,” he stressed the significance of harmonized regulations, seamless capital flows, and diversified investment opportunities to boost regional economic growth.
Ahmad cited successful examples of regional capital market integration, such as the Eastern Caribbean Securities Market and the ASEAN+3 Asian Bond Markets Initiative, noting how these platforms reduce transaction costs, manage risks more effectively, and broaden investor participation. He pointed out that economies with lower savings rates and limited access to bank financing, particularly for climate and infrastructure projects, stand to gain considerably from a cohesive and well-structured regional market.
To achieve this vision in Asia, the SBP Governor outlined four essential prerequisites. First, regulatory frameworks must be aligned across jurisdictions to ensure clarity and reduce barriers to cross-border investment. Second, market connectivity infrastructure needs to be developed to facilitate smooth transactions. Third, legal and institutional structures must be harmonized to support cross-border activities. Finally, collaboration among regulators, market participants, and financial institutions must be strengthened to build mutual trust and operational efficiency.
While advocating integration, Ahmad also cautioned against the potential risks, including financial contagion and regional imbalances, emphasizing the importance of robust surveillance frameworks and macroeconomic coordination to mitigate such threats.
Pakistan, he noted, is well-positioned to contribute to regional market integration, having undertaken significant structural reforms following economic stabilization. Under SBP’s Vision 2028 and the government’s Uraan Pakistan initiative, several projects are underway to expand financial inclusion, promote innovation, and establish a technology-driven financial ecosystem. Key developments include linking the Raast instant payment system with the Arab Monetary Fund’s Buna platform, as well as creating a unified digital identity and KYC framework in collaboration with SECP and the Pakistan Stock Exchange (PSX).
“The integration of our capital markets represents a historic opportunity to channel domestic savings into development projects, strengthen financial stability, and amplify our collective influence on the global stage,” Ahmad concluded. He highlighted that achieving these objectives requires sustained political will, regulatory cooperation, and a commitment to mutual trust across the region.
The conference marks a pivotal moment in Asia’s journey toward deeper financial integration, signaling that coordinated action and technological innovation are essential for resilient and inclusive growth across regional capital markets.
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