ISLAMABAD: Finance Minister Muh­ammad Aurangzeb has directed the Sec­u­rities and Exchange Commission of Pakis­tan (SECP) to accelerate the development of capital markets to broaden financing options and boost investor confidence.

The directive came during a meeting with the SECP’s new leadership, led by Chairman Kabir Ahmed Sidhu and Commissioner Ali Farid Khawaja, who called on the minister on Friday.

The finance minister stressed the need to align priorities to deepen capital markets, diversify financing sources for the public and private sectors, and strengthen investor confidence through efficient regulation, modern infrastructure and coordinated policy action.

Senior officials from the Finance Division, overseeing debt management, capital market development and regulatory coordination, were also present.

Mr Aurangzeb highlighted the government’s move towards a more integrated reform framework through the Capital Markets Development Council, with finalised terms of reference aimed at shifting away from institution-specific silos to a system-wide market development approach.

“The objective is to leverage progress already achieved across various market institutions while addressing gaps requiring regulatory reform, legislative support and inter-agency coordination,” he said.

A key focus of the discussion was the development of debt capital markets, with the minister emphasising the need to reduce reliance on banks and expand participation by insurance companies, asset managers, pension funds and retail investors, in line with sound asset-liability management practices.

The Finance Division shared progress on strengthening domestic debt management through improved front-, middle-, and back-office functions and liability management operations, noting that the next phase would require close collaboration with the SECP to enhance market depth and efficiency.

Participants identified reducing friction and intermediation costs as a priority, noting that multiple layers in the issuance-to-investor chain add costs and delay, limiting market effectiveness.

The meeting agreed that streamlining market architecture, improving issuance processes and strengthening secondary market functioning were essential to better connect borrowers with investors and support sustainable growth.

Investor onboarding and market access were discussed as critical to liquidity, with participants calling for faster digital account opening, risk-based know-your-customer requirements and consent-based portability of KYC across financial institutions.

Published in Dawn, January 31st, 2026