State Bank of Pakistan (SBP) Governor Jameel Ahmad stressed the importance of regional cooperation and innovation in his address at the inaugural International Capital Market Conference 2025 on Tuesday. Ahmad emphasized that building integrated capital markets is essential for mobilizing investment, enhancing economic resilience, and promoting sustainable growth across Asia.
The conference, focused on “Regional Integration and Innovation in Capital Markets: A New Era of Cooperation,” was organized by the Securities and Exchange Commission of Pakistan (SECP). Ahmad commended the SECP for creating a platform that fosters collaboration among policymakers, regulators, and market participants from the region.
During his address, Ahmad highlighted that no single country can address today’s complex financial and economic challenges alone. “In an increasingly interconnected world, regional market integration is not an option; it is a necessity,” he stated. He outlined three key dimensions of capital market integration: the importance of regional integration, the strategies for achieving it, and Pakistan’s role in this process.
The governor noted that regional capital markets can facilitate smoother capital flows, streamline regulations, and expand investment opportunities. For economies with low savings rates and limited bank financing, particularly in sectors like climate change and infrastructure, integrated regional markets offer a crucial avenue for financing. He emphasized that when capital is allocated efficiently, it leads to more inclusive, resilient, and sustainable growth.
Citing successful regional initiatives such as the Eastern Caribbean Securities Market and the ASEAN+3 Asian Bond Markets Initiative, Ahmad showcased the benefits of integration, including lower transaction costs, risk diversification, and broader investor participation. He pointed to ASEAN+3’s bond markets, which grew from 88% of GDP in 2002 to 133% of GDP by 2025, as a prime example of how collective regional action can drive growth.
However, Ahmad also acknowledged the potential risks of integration, such as the spread of financial contagion and imbalances. He stressed the need for strong surveillance frameworks and sound macroeconomic coordination to mitigate these risks.
The call for greater regional collaboration in Asia’s capital markets is seen as vital to addressing the region’s future financial challenges and ensuring sustained economic progress.
