Islamabad: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired the fourth meeting of the Capital Market Development Council (CMDC) at the Finance Division, evaluating the progress on capital market reforms. The meeting focused on boosting Pakistan’s corporate debt market, expanding the base of issuers and investors, improving market infrastructure, and facilitating access to long-term financing.
According to Press Information Department, the Council reviewed advancements on the reform agenda and the implementation of previous decisions, noting significant developments in corporate debt issuance, listing facilitation, secondary-market trading, and institutional investor engagement. The Finance Minister acknowledged the progress made by relevant institutions and stressed the need for coordinated and timely implementation.
The Council was informed that corporate debt issuances reached Rs 291 billion from January to September 2026, following Rs 326 billion raised in 2025, marking a 30% increase over 2024. Additionally, the market saw 12 new listed corporate debt issuances worth Rs 45.4 billion between February 2025 and September 2026, indicating growing activity in Sukuk and other debt instruments. The Council emphasized the importance of encouraging more public offerings and enabling a wider range of businesses to access capital market financing.
A notable development discussed was the proposed Shariah-compliant Sukuk program by the National Grid Company of Pakistan Limited (NGC), with a total program size of up to Rs 100 billion and an initial issuance of up to Rs 20 billion, with a tenor of up to 10 years. The program is expected to be issued in tranches through public offerings listed on the Pakistan Stock Exchange (PSX), subject to approvals and market conditions. The Finance Minister welcomed this initiative as a significant opportunity to demonstrate the potential of listed corporate debt instruments and encourage similar issuances by other entities.
Progress was noted on measures to simplify and facilitate corporate debt issuance. Dedicated Corporate Debt Market Desks have been established at the Securities and Exchange Commission of Pakistan (SECP) and PSX to support potential issuers and provide market guidance. The Finance Minister stressed the need to enhance awareness and outreach around these facilities to ensure greater utilization by prospective issuers. A one-window listing mechanism is operational through SECP and PSX, with simplified listing procedures and related information available online, while integration of the Central Depository Company (CDC) into the mechanism is underway to further streamline the listing process.
The meeting reviewed the proposed reform agenda under four thematic working groups covering Tax and Fiscal Matters; Debt and Issuance; Market Infrastructure; and Investor Protection and Enforcement. These workstreams aim to address tax-related distortions, streamline issuance and listing procedures, reduce transaction costs, strengthen market liquidity and investor safeguards, and promote greater use of innovative financing instruments, including green and thematic Sukuk.
On secondary-market development, the Council noted a significant improvement in trading activity, with average daily traded value increasing from Rs 3.93 billion in FY2026 to over Rs 10 billion during FY2027 to date, as of October 15, 2026. Thirteen banks have been onboarded and are actively participating in secondary-market trading arrangements, supported by ongoing engagement among PSX, the Pakistan Banks’ Association (PBA), CDC, and the National Clearing Company of Pakistan Limited (NCCPL). The Finance Minister welcomed the improvement in market activity and stressed the importance of sustaining liquidity and broadening participation.
The Council also reviewed measures to facilitate banks’ participation in government Sukuk trading through PSX, including existing arrangements permitting banks and other eligible institutions to trade government securities without maintaining broker accounts. Further regulatory and operational considerations relating to Sukuk-based liquidity facilities were discussed.
To broaden the institutional investor base, SECP briefed the Council on consultations undertaken with 17 pension fund managers and 44 insurance companies. The engagement has identified opportunities to improve the availability of suitable debt instruments, secondary-market liquidity, issuer disclosures, and the broader investment framework. The Council emphasized the importance of translating these consultations into practical measures that encourage greater participation by long-term institutional investors.
The meeting also reviewed outreach to potential corporate issuers, including SMEs, medium-sized, and non-blue-chip companies. The Finance Minister called for greater priority to be given to facilitating SME access to capital market financing, directing SECP to work closely with PSX and other relevant platforms to develop practical solutions. He also encouraged stronger engagement between investment banks, financial advisers, consultants, and prospective issuers, with the involvement of the Pakistan Business Council (PBC) and PBA, to build awareness, encourage long-term debt issuance, and develop a stronger pipeline of corporate financing transactions.
The Finance Minister further encouraged SECP and PSX to renew engagement with MSCI to explore Pakistan’s potential future reclassification to Emerging Markets status. Referring to his positive interaction with the MSCI team on the sidelines of the IMF-World Bank Annual Meetings in Bangkok, Thailand, earlier this month, he emphasized the importance of sustained dialogue and continued progress on market development and accessibility.
Senator Muhammad Aurangzeb emphasized that the next phase of capital market development must focus on translating regulatory and institutional reforms into increased issuance, deeper liquidity, and wider investor participation. He underscored the importance of expanding financing options beyond conventional bank lending, mobilizing domestic savings for productive investment, and enabling more businesses to access long-term capital.
The Finance Minister urged all stakeholders to maintain the reform momentum, address remaining bottlenecks, and pursue focused engagement with issuers and investors to accelerate the development of a more diversified, efficient, and accessible capital market.
The meeting was attended by the Chairman, SECP; representatives of SBP, PSX, PBA, and the Tax Policy Office; along with senior officials of the Finance Division.