Finance Minister Muhammad Aurangzeb today signalled a significant government strategy to reduce the national economy”s dependence on banks as the primary source of financing, advocating for a broader and more diverse capital market.
During a meeting with the new leadership of the Securities and Exchange Commission of Pakistan (SECP) in the capital today, the minister affirmed the government”s commitment to working in close collaboration with the regulatory body on a comprehensive reform agenda.
The proposed reforms are designed to deepen the market, widen the base of investors, and lower the costs associated with transactions. The agenda also aims to accelerate approval processes and ensure transparent regulations for all participants.
Mr Aurangzeb particularly emphasised the necessity of increasing participation from non-bank financial institutions. He called for greater involvement from insurance companies, asset managers, and pension funds, alongside an increase in retail investors, all operating within the framework of sound asset-liability management principles.
The Finance Minister underscored the importance of expanding the pool of institutions capable of supporting capital-raising activities. This move, he noted, would enhance competition and guarantee that market infrastructure possesses the capacity to manage increased issuance volumes without creating bottlenecks.
Concurrently, the Finance Division shared details of its ongoing work to strengthen domestic debt management by improving front, middle, and back-office functions. Officials stated that the next phase of this initiative necessitates close cooperation with the SECP to expand the market”s depth and operational efficiency.