ISLAMABAD: Finance Minister Muhammad Aurangzeb emphasised that regional tensions underline the urgent need for Pakistan to pursue independent commercial policies, diversify its energy sources, and mobilise domestic capital to accelerate national development.

Speaking at a ceremony on Wednesday to announce the establishment of the Capital Market Development Fund (CMDF), the minister said we must rely on our own resources and strengthen self-sufficiency. Capital markets can play a vital role in providing the financing needed for economic independence.

The CMDF participants include the Pakistan Stock Exchange (PSX), the Central Depository Company (CDC), the National Clearing Company of Pakistan Ltd (NCCPL), the Pakistan Mercantile Exchange (PMX), and the Institute of Financial Markets of Pakistan.

The CEOs of these organisations signed an agreement of the formation of the fund.

Rs120m CMDF aims to increase participation of women, youth

The CMDF has been established under the auspices of the Securities and Exchange Commission of Pakistan (SECP) and its target is to have coordination in the industry and strengthen the institutional capacity aimed to promote financial literacy, expand financial inclusion, and increase retail investor participation in the capital markets across the country.

Mr Aurangzeb reaffirmed the government’s commitment to economic stability, sustainable growth, and financial sector reforms. He emphasised the importance of strengthening capital markets, promoting local investment, achieving self-reliance, and implementing key energy sector reforms, while noting that Pakistan’s economy continues to move in a positive direction despite regional and economic challenges.

The minister noted that despite regional uncertainties and global economic pressures, Pakistan’s economic indicators were showing consistent improvement. He said the government remained focused on strengthening the current account balance and reducing the fiscal deficit while maintaining macroeconomic stability.

He stated that Pakistan’s stock market had demonstrated resilience during challenging times, reflecting growing investor confidence in the country’s economic direction.

Mr Aurangzeb emphasised that the SECP had a critical role in expanding investor awareness, improving the ease of investment, and introducing legal and regulatory reforms in the capital market. He assured full support for reforms aimed at deepening Pakistan’s financial markets.

SECP Chairman Dr Kabir Ahmed Sidhu highlighted that investor participation in Pakistan’s capital market remained below one per cent of the population despite recent growth.

He noted that the investor base is targeted to increase to 2.5 million in the coming years through ongoing structural reforms and investor facilitation measures. He stated that onboarding processes were being streamlined, while Know Your Customer (KYC) and Anti-Money Laundering (AML) frameworks were being simplified to facilitate investor entry without compromising regulatory safeguards.

Dr Mobashar Sadik, CEO IFMP, presented the strategic framework of the CMDF and described it as a ring-fenced institutional mechanism designed to support long-term capital market development.

He said the fund would be seeded with an initial contribution of Rs120 million, with participating institutions contributing 1pc of their annual revenues to ensure sustainability through a self-reinforcing funding model.

Published in Dawn, May 7th, 2026