ISLAMABAD: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb has said that the government is committed to establishing a vibrant, stable and inclusive capital market that can play a key role in financing economic expansion, increasing investor participation and strengthening ongoing structural reforms.
The inaugural meeting of the Capital Market Development Council (CMDC) in the Finance Division, chaired by the Finance Minister, reviewed the roadmap for strengthening and expanding Pakistan’s capital market in detail. The meeting was attended by representatives of SECP, State Bank, Pakistan Banks Association, Pakistan Stock Exchange, CDC, NCCPL, Pakistan Business Council and the Ministry of Finance.
The meeting, while considering the terms of reference and overall strategy of the council, emphasized that systematic progress is needed to make the market broader, deeper and more diversified while adopting global best practices.
The participants focused on four key areas, including increasing participation of retail and institutional investors, developing diversified investment products as per the needs of investors, improving facilitation for market intermediaries such as banks, brokers and mutual funds, and providing incentives to investors and issuers.
In this context, cross-border listings, regional cooperation and market integration were also discussed. The meeting also reviewed the needs for cross-border integration of capital markets, adaptation to technology, modernization of regulatory framework, and incentives for companies to raise capital through debt and equity.
The participants agreed that high liquidity, active trading and transparent pricing systems play a key role in strong economic growth.
The Finance Minister said on the occasion that the government is serious about establishing strong and vibrant capital markets that help businesses access capital and provide investors with safe and attractive investment opportunities.
He said that the ongoing structural reforms have played a significant role in improving the performance of the capital market and the private sector should make more effective use of the debt market.
The meeting also reviewed the regulatory, taxation and incentive framework. The Finance Minister directed the relevant agencies to formulate proposals for tax policy related to the capital market, tax incentives for issuers, promotion of wider listings and increasing transparency.
He said that the tax policy should be such that it benefits companies operating in a transparent and principled manner, and not burden them further.
The Finance Minister also directed the Council Secretariat to link the recently announced three-tier digitization program of the government with the development roadmap of the capital market.
It was also decided that working groups would be formed in priority sectors which would prepare key performance indicators (KPIs) and action plans in the next two weeks. The Council will review progress every quarter, while meetings will also be held at least once every three months.
These steps are being taken to create a vibrant, modern and highly liquid capital market ecosystem that effectively channels national savings into productive investment, supports economic growth and strengthens Pakistan’s overall financial stability.