ISLAMABAD (GNP): Key capital market institutions of Pakistan, including the Pakistan Stock Exchange, Central Depository Company, National Clearing Company of Pakistan Limited, Pakistan Mercantile Exchange, and the Institute of Financial Markets of Pakistan, signed an agreement to establish the Capital Market Development Fund (CMDF).
The CMDF, established under the auspices of the Securities and Exchange Commission of Pakistan (SECP), is a coordinated industry-wide initiative aimed at promoting financial literacy, expanding financial inclusion, increasing retail investor participation, and strengthening institutional capacity in Pakistan’s capital markets.
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb attended the signing ceremony held at SECP Headquarters in Islamabad as the Chief Guest.
The agreement documents were signed by CEO PSX Farrukh H. Sabzwari, CEO CDC Badiuddin Akber, CEO NCCPL Naveed Qazi, CEO PMEX Khurram Zafar, and CEO IFMP Dr. Mobashar Sadik. Chairman SECP Dr. Kabir Ahmed Sidhu and SECP Commissioners Imtiaz Haider, Muzaffar Mirza, Zeeshan Khattak, and Ali Farid were also present on the occasion.
Addressing the ceremony, the Finance Minister said recent regional tensions had reinforced the need for Pakistan to make independent commercial decisions, diversify energy resources, and mobilize domestic capital for national development.
“We must rely on our own resources and strengthen self-sufficiency. Capital markets can play a vital role in providing the financing needed for economic independence,” he said.
At the Ceremony, Senator Aurangzeb reaffirmed the government’s commitment to economic stability, sustainable growth, and financial sector reforms. He emphasized the importance of strengthening capital markets, promoting local investment, achieving self-reliance, and implementing key energy sector reforms, while noting that Pakistan’s economy continues to move in a positive direction despite regional and economic challenges.
The Finance Minister noted that despite regional uncertainties and global economic pressures, Pakistan’s economic indicators were showing consistent improvement. He said the government remained focused on strengthening the current account balance and reducing the fiscal deficit while maintaining macroeconomic stability.
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He stated that Pakistan’s stock market had demonstrated resilience during challenging times, reflecting growing investor confidence in the country’s economic direction.
Senator Aurangzeb emphasized that the SECP had a critical role in expanding investor awareness, improving ease of investment, and introducing legal and regulatory reforms in the capital market sector. He assured the government’s full support for reforms aimed at deepening Pakistan’s financial markets.
Chairman SECP Dr. Kabir Ahmed Sidhu highlighted that investor participation in Pakistan’s capital market remained below one percent of the population despite recent growth. He noted that the investor base is targeted to increase to 2.5 million in the coming years through ongoing structural reforms and investor facilitation measures.
He stated that onboarding processes were being streamlined, while Know Your Customer (KYC) and Anti-Money Laundering (AML) frameworks were being simplified to facilitate investor entry without compromising regulatory safeguards.
Dr. Sidhu identified financial literacy as a major structural constraint, noting that investor awareness efforts remained fragmented and retail outreach limited. He emphasized the need for coordinated national efforts to strengthen investor education, improve market understanding, and build investor confidence.
Market insights shared during the ceremony indicated that approximately 24,000 new investors entered the market in April 2026. Equity markets maintained positive momentum, while the debt capital market witnessed relative slowdown, highlighting the need for continued monitoring and data-driven policy interventions.
Dr. Mobashar Sadik, CEO IFMP, presented the strategic framework of the CMDF and described it as a ring-fenced institutional mechanism designed to support long-term capital market development. He said the Fund would be seeded with an initial contribution of Rs. 120 million, with participating institutions contributing one percent of their annual revenues to ensure sustainability through a self-reinforcing funding model.
He said CMDF would operate through four core pillars: strengthening financial literacy and investor awareness, expanding retail investor participation, promoting financial inclusion particularly among women, youth and underserved segments, and enhancing institutional capacity and market infrastructure.
The establishment of CMDF reflects a coordinated institutional effort to strengthen market infrastructure, broaden investor participation, and support the development of a more inclusive, resilient, and sustainable financial ecosystem in Pakistan.
