Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, on Wednesday chaired a meeting of the Capital Market Development Council (CMDC) and directed the Securities and Exchange Commission of Pakistan (SECP) to enhance communication on capital market reforms to improve awareness among companies and investors.
Islamabad, March 11, 2026 Federal Minister of Finance and Revenue, Senator Muhammad Aurangzeb, on Wednesday chaired a meeting of the Capital Market Development Council (CMDC) and directed the Securities and Exchange Commission of Pakistan (SECP) to enhance communication on capital market reforms to improve awareness among companies and investors.
The meeting reviewed the progress made in capital market reforms, with discussions focusing on developing the corporate bond market, improving secondary market liquidity, simplifying issuance procedures, strengthening market infrastructure, and reviewing the tax framework affecting capital market participants.
The meeting was attended by Chairman of the Securities and Exchange Commission of Pakistan, Dr. Kabir Sidhu, along with representatives of the Pakistan Stock Exchange, State Bank of Pakistan, Central Depository Corporation, National Clearing Corporation of Pakistan Limited, Pakistan Banks Association and Pakistan Business Council.
The Finance Minister stressed that Pakistan needs to gradually move towards a more balanced financial system where capital markets complement the banking sector in meeting the financing needs of the economy.
He pointed out that developing an active corporate bond market would play an important role in mobilizing long-term domestic savings and supporting private sector investments.
Aurangzeb stressed the need for practical and time-bound reforms to address bottlenecks across the capital market value chain, including issuance processes, regulatory procedures, market infrastructure and secondary market liquidity.
He said reforms should focus on creating an enabling environment where companies can raise funds efficiently through market-based instruments while investors benefit from greater transparency, liquidity and trust.
During the meeting, the Minister of Finance stressed the importance of strengthening communication regarding the recent regulatory reforms introduced to facilitate the issuance of corporate bonds and improve market access. He directed the SEC to enhance outreach efforts so that companies, financial institutions and other market participants are fully aware of the streamlined regulatory framework, reduced documentation requirements and other facilitation measures introduced in recent months.
The meeting also discussed the need to draw lessons from international and regional experiences in the field of developing capital markets. The Finance Minister asked relevant institutions to review best practices in neighboring markets which could be adapted to the Pakistani context.
Participants also highlighted structural challenges affecting the growth of the corporate bond market, including delays in approvals, coordination gaps among market participants, and limited awareness among potential issuers.
The discussion also focused on improving secondary market liquidity for corporate debt instruments, with participants noting that the absence of effective market-making arrangements currently limits trading activity and price discovery.
Representatives of Pakistan Stock Exchange, Securities and Exchange Commission, State Bank of Pakistan, Central Depository Corporation, National Clearing Corporation of Pakistan Limited, Pakistan Banks Association and Pakistan Business Council briefed the meeting on the recent initiatives taken to facilitate corporate bond issuance and improve market performance.
Participants noted that several regulatory reforms have already been implemented, including simplifying prospectus requirements, simplifying documentation procedures, reducing regulatory fees, and digitizing the issuance process to improve efficiency and transparency.
The meeting also reviewed the broader reform agenda under the Capital Market Development Council, which aims to enhance coordination between regulatory bodies, market infrastructure institutions and the private sector.
In this regard, the Council plans to activate specialized working groups that include representatives of regulatory bodies, financial institutions and industry stakeholders to focus on key reform areas including tax and fiscal policy, debt issuance frameworks, market infrastructure development and investor protection.
The Minister of Finance affirmed the government’s commitment to developing the capital market in a deeper and more efficient manner as it is a fundamental pillar for mobilizing investment, enhancing financial stability, and supporting economic growth led by the private sector.