ISLAMABAD, May 6, 2026 — Finance Minister Muhammad Aurangzeb on Wednesday described the launch of the Capital Market Development Fund (CMDF) as a “milestone” and called for coordinated reforms to deepen and modernize Pakistan’s capital markets.
Speaking at the CMDF signing ceremony organized by the Securities and Exchange Commission of Pakistan, Aurangzeb said strong capital markets are essential for sustainable economic growth, mobilizing savings and unlocking long-term financing for key sectors.
He emphasized that the initiative reflects a collective institutional effort, adding that “robust capital markets are engines of sustainable growth” by enabling capital formation, risk-sharing and infrastructure financing.
The minister outlined four priority areas, including strengthening the broader capital market framework, improving the balance between equity and debt markets, enhancing the regulatory role of SECP, and fostering partnerships among stakeholders.
Linking economic strategy to global and regional challenges, Aurangzeb stressed the need to build strategic reserves alongside commercial buffers to improve economic resilience. He also highlighted the importance of accelerating investment in renewable energy, including solar, wind and hydropower, noting that capital markets would play a key role in financing the transition.
He underscored the importance of self-reliance, saying stronger fiscal buffers would reduce dependence on external assistance during crises such as floods. “The power of macroeconomic stability lies in our ability to respond to shocks with our own resources,” he said.
Aurangzeb noted that Pakistan must reduce over-reliance on the banking sector and expand the role of capital markets. While acknowledging progress in the equity market — with more than 220,000 new investors added in the past two years — he expressed concern over the underdevelopment of the debt market, calling for regulatory and taxation reforms to revive corporate bond activity.
He also stressed the need for financial literacy and investor education, particularly targeting younger, tech-savvy participants shaping market trends.
Describing SECP’s regulatory role as a “fine balancing act,” the minister called for simplifying processes and strengthening institutional capacity through reforms in people, processes and technology.
Aurangzeb said the CMDF initiative would act as a catalyst for improving market infrastructure, mobilizing domestic resources and supporting Pakistan’s long-term economic transformation.