Islamabad: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired a meeting of the Capital Market Development Council (CMDC) to review progress on capital market reforms, with a particular focus on accelerating the development of Pakistan’s corporate debt market and strengthening capital markets as an important source of long-term financing for the private sector.
According to Press Information Department, the meeting reviewed the current state of Pakistan’s capital markets, emphasizing the need to accelerate the development of the corporate debt market and broaden access to diversified financing sources. The Finance Minister noted that while the equity market has shown progress, the corporate debt market remains underdeveloped relative to the economy’s financing needs. The discussion highlighted the necessity to deepen the debt capital market, reduce reliance on bank financing, and promote diversified market-based financing to create a more balanced financial ecosystem.
The participants discussed an ongoing external study on developing Pakistan’s local currency-linked bond market, encompassing key reform priorities across various sectors. The Finance Minister emphasized that the study should provide practical recommendations supported by international benchmarking to guide future reforms.
The meeting also reviewed findings from surveys and consultations conducted by the Securities and Exchange Commission of Pakistan (SECP) on challenges faced by top-listed companies in accessing the corporate debt market. The Finance Minister stressed the need to expand engagement to include medium-sized enterprises and other growth-oriented businesses.
Senator Aurangzeb highlighted the importance of dedicated institutional capacity to accelerate debt market reforms and advised the SECP and Pakistan Stock Exchange (PSX) to establish dedicated Debt Desks. These desks should have clearly defined mandates and measurable performance indicators.
Participants deliberated on simplifying the corporate debt issuance process through greater coordination among the SECP, PSX, and Central Depository Company. The Finance Minister called for developing a streamlined one-window listing framework to improve transparency and ease of access for issuers.
Discussions also covered the development of Pakistan’s Islamic capital market, including measures to deepen the Sukuk market and facilitate greater issuance of green financial instruments. The participants reviewed policy proposals relating to taxation, SME preparedness, and digital distribution platforms to broaden investor participation.
Emphasizing the need for swift action, Senator Aurangzeb stated that the Council’s future work should focus on thematic reform areas supported by dedicated working groups to expedite decision-making. Recommendations from consultations and studies should be translated into actionable reform measures with clearly defined milestones and periodic progress reviews.
The meeting was attended by senior officials from various financial and business organizations, including the SECP, PSX, and State Bank of Pakistan.