Tells SECP reforms will target lower issuance costs, digital onboarding and wider investor participation
ISLAMABAD:
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb said that under the Capital Markets Development Council, the government is promoting coordinated reforms across the entire financial system by moving beyond institutional silos as part of its comprehensive reform agenda. Emphasising the development of debt capital markets, he stressed the need to reduce reliance on banks and to increase the participation of insurance companies, pension funds, asset management institutions and retail investors.
According to the Ministry of Finance, the minister expressed these views on Friday during a meeting with Securities and Exchange Commission of Pakistan (SECP) Chairman Dr Kabir Ahmed Sidhu and Commissioner Ali Farid Khawaja, who called on him at the finance ministry. During the meeting, the finance minister welcomed the new leadership of the SECP and expressed confidence that Dr Kabir Ahmed Sidhu’s domestic and international experience would play an important role in modernising Pakistan’s capital market regulatory framework.
The meeting reviewed various proposals to increase the number of investors in capital markets, diversify financial products and strengthen investor confidence through effective regulation. Senior officials of the Finance Division were also present on the occasion.
The finance minister briefed participants on the government’s comprehensive reform agenda under the Capital Markets Development Council, aimed at promoting coordinated reforms across the entire financial system rather than within isolated institutions. Stressing the importance of developing debt capital markets, he reiterated the need to reduce dependence on banks and to broaden market participation by insurance companies, pension funds, asset management firms and retail investors.
The meeting also agreed on reducing costs and barriers in the market, simplifying issuance procedures and improving the secondary market. On the occasion, SECP Chairman Dr Kabir Sidhu said that digital onboarding of investors, fast-track digital account opening, risk-based know-your-customer (KYC) requirements and easier market access for retail investors were among his top priorities. He shared his initial observations on improving regulatory frameworks for the non-banking sector, small and medium enterprise financing and insurance, and presented his proposals to promote financial inclusion.
He expressed his commitment to working with the Finance Division and market stakeholders to translate reforms into tangible outcomes. The federal finance minister assured full support for market development and regulatory reforms.
