Islamabad (GNP): The Securities and Exchange Commission of Pakistan’s (SECP) ongoing reform drive has emerged as a significant catalyst for growth in Pakistan’s capital markets and corporate landscape, with the Pakistan Stock Exchange (PSX) ranking among the world’s top-performing bourses during the first nine months of FY2025-26, as documented in the Economic Survey 2025-26.
The Survey records a striking 18.4 percent surge in the KSE-100 Index between July and March of FY2025-26, with the benchmark climbing from 125,627 points to 148,743 points over the period. Market capitalization expanded to Rs16.5 trillion, while average daily trading volumes climbed sharply to 1.2 billion shares from 834 million shares recorded in the corresponding period a year earlier — a trend that speaks to growing investor appetite fueled by improving macroeconomic fundamentals and SECP’s regulatory interventions.
Pakistan’s flagship index outpaced most major global equity benchmarks during the period, buoyed by easing inflationary pressures, successful reviews under the IMF programme, strengthening external sector metrics, and continued inflows from bilateral and multilateral partners.
The Survey attributes much of this momentum to a series of SECP-led reforms, including the transition to a T+1 settlement cycle, public offering process enhancements, investor facilitation measures, digital onboarding platforms, improvements in corporate disclosure standards, and broader market development initiatives. Collectively, these measures have deepened capital market participation, raised transparency standards, and reinforced investor confidence.
The corporate sector demonstrated equally strong momentum, with 31,986 new companies registered between July and March of FY2025-26, pushing the total count of incorporated entities in Pakistan to 294,101. The newly registered companies collectively brought in paid-up capital of Rs67 billion, with the information technology, trading, and services sectors leading the way in new business formation.
To further ease the business environment, SECP introduced a range of facilitative measures including complete digitization of share ownership records for unlisted companies, expedited bank account opening procedures, integration of systems across government agencies, and an overhaul of the corporate restructuring framework.
Activity in the debt market remained meaningful, with six debt securities totaling Rs12.45 billion issued during the period. Since the launch of the PSX-based debt auction platform in December 2023, the government has mobilized Rs5.1 trillion through the facility. Total outstanding debt securities stood at Rs133.6 billion by March 2026.
The non-banking financial sector continued on a growth trajectory. Mutual fund assets under management reached Rs4.54 trillion, with the broader mutual fund industry expanding to Rs5.64 trillion in total size. Voluntary pension fund assets grew to Rs138 billion, while the number of REIT schemes rose to 29, carrying a combined fund value of Rs173 billion.
Islamic finance maintained a strong upward trajectory. During July-March FY2025-26, SECP granted Shariah compliance certifications for 53 corporate Sukuk issuances valued at Rs229.6 billion, while sovereign Sukuk reached Rs1.86 trillion.
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Shariah-compliant securities now account for 64 percent of total PSX market capitalization, a figure that underscores the growing centrality of Islamic finance within Pakistan’s capital markets.
The Economic Survey concludes that sustaining macroeconomic stability, pressing forward with structural reforms, and reinforcing investor protection frameworks will be essential for broadening the reach of Pakistan’s capital markets, diversifying the investor base, and encouraging deeper participation from both businesses and institutional investors in the years head.
