ISLAMABAD: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired a meeting of the Capital Market Development Council (CMDC) on Wednesday, directing the Securities and Exchange Commission of Pakistan (SECP) to enhance outreach on capital market reforms. The initiative aims to improve awareness among corporates and investors about ongoing reforms.
According to Securities and Exchange Commission of Pakistan, the meeting reviewed progress on capital market reforms, emphasizing the development of the corporate bond market, improving secondary market liquidity, simplifying issuance procedures, and reviewing the tax framework affecting capital market participants. Chairman SECP, Dr. Kabir Sidhu, along with representatives from various financial institutions, attended the meeting.
The finance minister stressed that Pakistan should move towards a balanced financial system where capital markets complement the banking sector in financing the economy. He highlighted the need for practical reforms to address bottlenecks across the capital market value chain, including issuance processes and regulatory procedures.
Aurangzeb directed the SECP to enhance communication regarding regulatory reforms to facilitate corporate bond issuance and improve market access. He emphasized the importance of informing market participants about the simplified regulatory framework and reduced documentation requirements introduced recently.
The meeting also discussed learning from international experiences in capital market development. Participants noted structural challenges affecting the corporate bond market growth, such as delays in approvals and limited awareness among issuers. Recent initiatives to facilitate corporate bond issuance and improve market functioning were also reviewed.
The broader reform agenda includes operationalizing specialized working groups to focus on key reform areas, such as tax policy and market infrastructure development. The finance minister reiterated the government’s commitment to developing an efficient capital market to mobilize investment and support economic growth.