The Securities and Exchange Commission of Pakistan (SECP) has constituted a high-level working group to reform country’s corporate debt market.
The initiative was launched following guidance from the finance minister, who identified the development of a robust corporate debt market as a national priority.
He stressed the need for Pakistan to build a more balanced financial system by enabling companies to access diverse long-term funding sources instead of relying primarily on conventional bank financing.
The working group, headed by SECP Commissioner Ali Farid Khawaja, includes representatives from the Ministry of Finance, the SECP, capital market institutions, financial institutions, a credit rating agency, legal experts, and other industry stakeholders.
The panel has been tasked with developing practical recommendations in three major areas: simplifying the debt issuance process, reducing issuance costs, and standardising legal documentation. These measures are intended to make corporate debt issuance more efficient while lowering the time and expenses involved.
The recommendations put forward by the working group will serve as the foundation for future regulatory and policy changes aimed at strengthening Pakistan’s corporate debt market, improving market efficiency, and expanding businesses’ access to long-term capital.
SECP Chairman Dr. Kabir Ahmed Sidhu said that deepening the corporate debt market remains a strategic objective, adding that a stronger debt market would widen long-term financing options for companies, attract greater institutional investment, and support infrastructure as well as industrial growth
