Pakistan’s capital market sector formally established the Capital Market Development Fund today, while the Securities and Exchange Commission of Pakistan (SECP) simultaneously set an ambitious target to increase the number of investors to 2.5 million in the coming years. This initiative aims to grow the current number of investors, which is less than one percent of the total population.
The agreement for the Capital Market Development Fund was signed by the chief executives of key national institutions, including Pakistan Stock Exchange, Central Depository Company, National Clearing Company of Pakistan Limited, Pakistan Mercantile Exchange, and Institute of Financial Markets of Pakistan. The ceremony was held at SECP Headquarters, with Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, present as the chief guest. Chairman SECP Dr. Kabir Ahmed Siddiqui and other commissioners were also present.
The new fund, established under the guidance of SECP, is designed to increase the number of individuals participating in the capital market. Its objectives include providing financial literacy to youth, simplifying investment procedures, and implementing comprehensive reforms in the market infrastructure.
In his address, Senator Aurangzeb emphasized the need for making business decisions aligned with national interests and promoted the development of alternative energy sources to reduce reliance on traditional fuels. He highlighted the crucial role of capital markets in generating the necessary capital to achieve economic self-reliance.
The Minister acknowledged that despite regional and global economic pressures, Pakistan’s economic indicators continue to show improvement. He reiterated the government’s commitment to reducing the current account deficit and maintaining economic stability.
Senator Aurangzeb lauded SECP’s efforts to enhance investor awareness, simplify the investment journey, and introduce significant legal and regulatory amendments in the capital market. He also reiterated the government’s full support for further strengthening the country’s financial markets.
Chairman SECP Dr. Kabir Ahmed Siddiqui highlighted the commission’s strategic objective to increase the number of investors to 2.5 million through structural reforms. He acknowledged ongoing efforts to simplify the onboarding process for new market participants. Dr. Siddiqui emphasized the need for integrated national-level initiatives, to be led by the Capital Market Development Fund, to foster investor confidence and understanding of market dynamics.
According to data presented during the ceremony, approximately 24,000 new investors joined the market during April 2026. While the equity market showed positive trends, the debt capital market demonstrated relative sluggishness, highlighting the need for robust oversight and evidence-based policy interventions.
Dr. Mubashir Sadiq, CEO of the Institute of Financial Markets, outlined the fund’s strategic framework, describing it as a “ring-fenced” institutional system dedicated to long-term capital market development. The fund will commence operations with an initial investment of PKR 120 million, with participating capital market institutions contributing one percent of their annual income to ensure its sustainable operation.