Finance Minister Muhammad Aurangzeb has called for faster implementation of capital market reforms, highlighting the need to expand Pakistan’s corporate debt market and reduce businesses’ dependence on traditional bank lending.
Chairing a meeting of the Capital Market Development Council (CMDC) on Friday, he said the equity market had made notable progress, but the corporate debt segment remained insufficiently developed to meet the country’s growing financing needs.
The finance minister said a stronger debt capital market would diversify funding sources, encourage market-based financing and help build a more balanced and resilient financial system. Expanding access to long-term financing would be particularly beneficial for small and medium-sized enterprises (SMEs), he added.
The meeting reviewed an ongoing external study on the development of Pakistan’s local currency-linked bond market. Aurangzeb directed that the study should produce practical and evidence-based recommendations, drawing on international best practices to support the next phase of reforms.
To enhance institutional oversight, he instructed the SECP and the PSX to create dedicated Debt Desks at the senior management level. These units should have clear mandates, measurable targets and responsibility for monitoring reform implementation.
The minister also emphasised the importance of increasing competition among market intermediaries and infrastructure providers to improve efficiency, enhance services and lower transaction costs for both issuers and investors.
The meeting further considered steps to expand Pakistan’s Islamic capital market, including the domestic Sukuk sector, while also focusing on improving secondary market liquidity, encouraging green and sustainable financial products, reforming taxation, preparing SMEs for capital market access, increasing financial literacy and expanding digital investment platforms.
Stressing the importance of execution, Aurangzeb directed that the CMDC’s future agenda should be managed through thematic working groups with clearly assigned responsibilities, defined timelines and regular reviews of progress.
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