The inaugural meeting of the Capital Market Development Council (CMDC) was held on Friday under the chairmanship of Finance Minister Muhammad Aurangzeb, bringing together senior officials from the Securities and Exchange Commission of Pakistan (SECP), State Bank of Pakistan (SBP) and key market stakeholders to review the roadmap for capital market reforms.
Aurangzeb said the government aims to build vibrant and inclusive capital markets capable of financing economic growth, improving access to investment, and supporting the structural reform agenda, according to an official statement. He said developing a modern, integrated and investor-friendly market ecosystem is essential for boosting savings, deepening market activity and strengthening long-term economic resilience.
Participants included representatives from SECP, SBP, Pakistan Banks Association, Pakistan Stock Exchange, Central Depository Company, National Clearing Company of Pakistan Limited, Pakistan Business Council and the Finance Division. The council reviewed its Terms of Reference and discussed a structured development plan built around global best practices.
The meeting focused on four core areas: widening retail and institutional investor participation; expanding diversified investment products; improving facilitation for banks, brokers and mutual funds; and creating incentives for both investors and issuers, including options for cross-border listings and collaborations.
Discussions also covered the need for regulatory modernisation, alignment of market technologies, and incentives to encourage companies to raise capital through debt and equity markets. Aurangzeb said ongoing structural reforms are already supporting stronger market performance and called for greater use of the domestic debt market by both public and private sectors.
The council also reviewed taxation, regulatory and incentive frameworks. Aurangzeb directed the Tax Policy Office, SBP, SECP, Debt Management Office and Finance Division to jointly examine capital market taxation, issuer-side incentives and measures to promote wider listings, stressing that compliant companies should be encouraged rather than penalised.
He further instructed the secretariat to integrate the government’s three-tier digitisation initiative into the capital market roadmap. Dedicated working groups will now be established to prepare KPIs and action plans within two weeks. Quarterly reports will be submitted to track progress, and the council will meet at least once every quarter.
