ISLAMABAD: Finance Minister Muhammad Aurangzeb has said the government is committed to building vibrant and inclusive capital markets that can support economic expansion, broaden investor participation and advance the ongoing structural reforms.

“Developing a modern, integrated and investor-friendly capital market ecosystem is a key national priority, essential for improving access to finance, promoting savings, deepening market activity and strengthening Pakistan’s long-term economic resilience,” he said while chairing the inaugural meeting of the Capital Market Development Council (CMDC) at the Finance Division on Friday to review the roadmap for strengthening and expanding the country’s capital markets.

The meeting was attended by representatives from the Securities and Exchange Commission of Pakistan (SECP), State Bank of Pakistan (SBP), Pakistan Banks Association (PBA), Pakistan Stock Exchange (PSX), Central Depository Company (CDC), National Clearing Company of Pakistan Limited (NCCPL), Pakistan Business Council (PBC) and the Finance Division attended the meeting.

The CMDC reviewed the terms of reference and the overall roadmap for the capital market development plan and strategy, stressing the adoption of global best practices and a structured approach to broadening and deepening the market.

Discussions focused on four core areas: increasing participation of retail and institutional investors; developing diversified investment products tailored to investor needs; improving facilitation for intermediaries including banks, brokers and mutual funds; and creating incentives for investors and issuers, including measures for cross-border listings, collaborations and wider market integration.

The meeting also reviewed the requirements for cross-border market integration, technology alignment, regulatory modernisation and incentives for issuers to raise funds through debt and equity markets. Participants reaffirmed the importance of building high-liquidity, dynamic and transparent price-discovery mechanisms to strengthen the contribution of capital markets to national economic growth.

Aurangzeb highlighted the government’s commitment to creating well-functioning markets that support issuers in raising capital and offer investors secure and competitive investment avenues. He said the ongoing structural reforms are already improving market performance and stressed the need for both the government and the private sector to make fuller use of the debt capital market. He urged the council to identify and remove bottlenecks that limit private sector participation, noting the capital market’s central role in connecting entities that need capital with those that have savings, through efficient and transparent issuance of equity and debt instruments.

The meeting also reviewed regulatory, taxation and incentive frameworks, including improvements in oversight, incentives to encourage more companies to list, and tax policies to support product development and competitiveness.

Mr Aurangzeb said taxation remains a key factor influencing capital market attractiveness and directed the Tax Policy Office, SBP, SECP, DMO and Finance Division to jointly review capital market taxation, issuer-side tax incentives and measures to encourage wider listings and transparency.

He emphasised the need to reward compliant and transparent companies. He also instructed the council’s secretariat to integrate the government’s recently announced three-tier digitisation initiative into the capital market development roadmap.

Published in Dawn, November 29th, 2025