Key institutions of Pakistan’s capital markets have signed an agreement to launch the Capital Market Development Fund (CMDF) with the aim of expanding the investor base.
The initiative, formed under the supervision of the Securities and Exchange Commission of Pakistan, aims to enhance financial literacy, promote inclusion, boost retail investor participation and strengthen institutional capacity across the country’s capital markets.
The signing ceremony took place at SECP headquarters in Islamabad, with Finance Minister Muhammad Aurangzeb attending as chief guest. The agreement was signed by PSX CEO Farrukh H. Sabzwari, CDC CEO Badiuddin Akber, NCCPL CEO Naveed Qazi, PMEX CEO Khurram Zafar and IFMP CEO Dr Mobashar Sadik. SECP Chairman Dr Kabir Ahmed Sidhu and other commissioners were also present.
Addressing the event, the finance minister said recent regional developments underscored the importance of economic self-reliance, diversification of energy resources and mobilising domestic capital. He stressed that strong capital markets are essential to financing sustainable growth and achieving economic independence.
He reaffirmed the government’s commitment to stability, reform and long-term growth, noting that despite external pressures, key economic indicators are improving. He added that efforts remain focused on strengthening the current account, reducing the fiscal deficit and maintaining macroeconomic stability. The minister also highlighted the resilience of Pakistan’s stock market, saying it reflects rising investor confidence.
Muhammad Aurangzeb emphasised the SECP’s role in expanding investor awareness, simplifying investment processes and introducing regulatory reforms, assuring full government backing for measures aimed at deepening financial markets.
Dr Kabir Ahmed Sidhu pointed out that less than one per cent of Pakistan’s population currently participates in capital markets. He said ongoing reforms aim to expand the investor base to 2.5 million by simplifying onboarding procedures and easing Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements without weakening safeguards.
He identified low financial literacy and limited outreach as key challenges, calling for coordinated national efforts to improve awareness and build investor confidence.
Data shared during the event showed that around 24,000 new investors entered the market in April 2026. While equity markets remained strong, activity in the debt market slowed, indicating the need for continued monitoring and policy adjustments.
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