Governor of the State Bank of Pakistan (SBP), Jameel Ahmad, has underlined the urgent necessity for greater regional collaboration and innovative approaches to establish integrated capital markets across Asia. Speaking at the inaugural International Capital Market Conference 2025 in Karachi, he emphasized that such markets are essential to mobilize investments, enhance economic resilience, and foster sustainable growth across the region.
Ahmad lauded the Securities and Exchange Commission of Pakistan (SECP) for organizing the landmark conference, which brought together policymakers, regulators, and market participants from across Asia. Speaking on the theme “Regional Integration and Innovation in Capital Markets: A New Era of Cooperation,” the Governor stressed that no single country can address today’s economic and financial challenges in isolation. “In an increasingly interconnected world, regional market integration is not an option—it is a necessity,” he remarked.
During his address, Ahmad outlined three dimensions critical to capital market integration: why it is important, how it can be achieved effectively, and how Pakistan is strategically positioned to contribute. He highlighted that integrated regional markets allow smoother capital flows, harmonized regulations, and broader investment opportunities. This is particularly significant for economies with low savings rates and limited access to bank financing, including funding for climate initiatives and infrastructure projects. “When capital is allocated more efficiently, growth becomes more inclusive, resilient, and sustainable,” he added.
Citing successful regional examples, the Governor referred to the Eastern Caribbean Securities Market and the ASEAN+3 Asian Bond Markets Initiative. He noted that ASEAN+3 bond markets expanded from 88 percent of GDP in 2002 to 133 percent in 2025, demonstrating the tangible benefits of collective action. Integration, he explained, lowers transaction costs, diversifies risk, and expands the investor base, providing a template for similar initiatives across Asia.
Ahmad also outlined four prerequisites to achieve such integration: alignment of regulatory frameworks, development of market connectivity infrastructure, harmonization of legal and institutional structures, and strengthening collaboration among regulators and market participants. While integration offers opportunities, he warned of potential risks such as contagion and economic imbalance, which must be addressed through robust surveillance mechanisms and sound macroeconomic coordination.
Turning to Pakistan, Ahmad stressed that the country is well-positioned to undertake structural reforms following recent economic stabilization. Under SBP’s Vision 2028 and the government’s Uraan Pakistan blueprint, initiatives are underway to expand financial access, foster innovation, and build a resilient, technology-driven financial ecosystem. Key measures include expanding the Raast instant payment system beyond borders through its linkage with the Arab Monetary Fund’s Buna platform, as well as developing a unified digital identity and KYC framework in collaboration with SECP and the Pakistan Stock Exchange (PSX). These steps aim to simplify investor access across banking, insurance, and capital markets.
“The integration of our capital markets represents a historic opportunity—to harness our own savings for development, strengthen financial stability, and amplify our collective voice in the global financial system,” Ahmad concluded. He emphasized that realizing this vision will require sustained political will, regulatory cooperation, and mutual trust, stressing that together, Asian economies can build a region capable of financing its own future.
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