Capital Market Development Fund launched to unlock investor growth

May 06, 2026 (MLN): Pakistan has launched the Capital Market Development Fund as part of efforts to expand its investor base to 2.5 million, enhance financial literacy especially among youth and make investment in capital markets simpler and more accessible.

The initiative, backed by the Securities and Exchange Commission of Pakistan (SECP), is also aimed at introducing structural reforms and strengthening the role of capital markets in supporting economic stability and self-reliance, according to a press release issued.

The agreement to establish the fund was signed at SECP headquarters in Islamabad in a ceremony attended by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb as chief guest.

Signatories included Pakistan Stock Exchange CEO Farrukh H. Sabzwari, Central Depository Company CEO Badiuddin Akber, National Clearing Company CEO Naveed Qazi, Pakistan Mercantile Exchange CEO Khurram Zafar, and Institute of Financial Markets CEO Dr. Mubashir Sadiq.

SECP Chairman Dr. Akif Saeed, along with commissioners Imtiaz Haider, Muzaffar Mirza, Zeeshan Khattak, and Ali Fareed, was also present.

Addressing the event, the finance minister said recent regional tensions underscore the need for Pakistan to make independent economic decisions, reduce reliance on traditional energy sources, and move toward alternatives.

He emphasized that strong capital markets are essential for mobilizing investment required for economic sovereignty.

He noted that despite global and regional economic pressures, Pakistan’s key economic indicators are improving, with the government focusing on reducing current account and fiscal deficits while maintaining stability.

He also pointed out that the stock market’s resilience reflects growing investor confidence.

Finance minister Aurangzeb highlighted SECP’s role in improving investor awareness, simplifying investment procedures, and advancing regulatory reforms, while reaffirming the government’s commitment to strengthening financial markets.

SECP Chairman Dr. Akif Saeed said that although progress has been made, investor participation in Pakistan remains below one percent of the population.

He added that structural reforms are underway to reach the target of 2.5 million investors in the coming years, alongside efforts to simplify onboarding and build investor confidence through coordinated national initiatives.

Data shared during the ceremony showed that around 24,000 new investors entered the market in April 2026. While the equity market continued to show positive momentum, the debt market lagged, highlighting the need for improved oversight and data-driven policymaking.

Dr. Mubashir Sadiq briefed participants on the fund’s framework, describing it as a ring-fenced institutional mechanism designed for long-term development. The fund will start with an initial capital of Rs120 million, with capital market institutions contributing one percent of their annual income to ensure its continuity.

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