ISLAMABAD: Individual investors can now directly invest in Government Debt Securities (GDS), including Sukuk, marking a significant step towards expanding retail participation in Pakistan’s financial markets. This update was conveyed by the Securities and Exchange Commission of Pakistan (SECP) to Finance Minister Muhammad Aurangzeb during his recent visit to SECP headquarters.
Government Debt Securities encompass various instruments such as Treasury Bills (T-Bills), Pakistan Investment Bonds (PIBs), Government of Pakistan (GoP) Ijarah Sukuk, and other debt instruments issued by federal, provincial, or local governments, as well as statutory bodies.
During the meeting, SECP officials shared the latest developments on GDS, emphasizing the regulatory framework designed to enhance accessibility for individual investors. Finance Minister Aurangzeb praised SECP’s efforts but stressed the importance of improving liquidity in the secondary market to ensure a robust trading environment.
The government has already permitted money market schemes to invest in government securities traded on the Pakistan Stock Exchange (PSX). This move aims to encourage maximum participation of mutual funds in Sukuk and other government-issued securities, SECP officials informed the minister.
The SECP Chairman highlighted initiatives aimed at improving ease of doing business in Pakistan, leveraging technological advancements through regulatory reforms, digitalized services, and enhanced access to finance. He also briefed the minister on efforts to promote market innovation, including regulatory sandboxes and support for startups.
Finance Minister Aurangzeb expressed keen interest in SECP’s sustainability-focused initiatives, particularly the ESG Sustain Portal. He also lauded the commission’s investor-centric efforts, such as the Central Gateway Portal, Emlaak Financials, and one-window solutions for companies. These measures are designed to simplify processes like digital document filing and facilitate investors.
The minister urged SECP to raise awareness about these initiatives to maximize their impact on stakeholders. He also called for closer collaboration with the government to effectively introduce pension reforms and enhance cooperation with other regulatory bodies for seamless financial services. Furthermore, he assured the government’s full support for legislative reforms aimed at strengthening Pakistan’s financial sector.
