SBP calls for regional cooperation to build integrated capital markets in Asia

November 11, 2025 (MLN):  The State Bank of Pakistan (SBP) has called for greater regional cooperation and innovation to build integrated capital markets across Asia, capable of mobilizing investment, enhancing resilience, and fostering sustainable growth.

Governor SBP, Mr. Jameel Ahmad, made the remarks while delivering the keynote address at the inaugural International Capital Market Conference 2025 in Karachi, praising the Securities and Exchange Commission of Pakistan (SECP) for hosting the  event, according to a press release by SBP.

Speaking on the theme “Regional Integration and Innovation in Capital Markets: A New Era of Cooperation,” he stressed that no single country can address today’s economic and financial challenges in isolation.

Mr. Ahmad highlighted that regional capital markets facilitate smoother capital flows, harmonized regulations, and broader investment opportunities, particularly for economies with low savings rates and limited bank financing for climate and infrastructure projects.

Citing examples such as the Eastern Caribbean Securities Market and the ASEAN+3 Asian Bond Markets Initiative, he noted that integration lowers transaction costs, diversifies risk, and expands the investor base.

To achieve such integration in Asia, the Governor outlined four key prerequisites: alignment of regulatory frameworks, development of market connectivity infrastructure, harmonization of legal and institutional structures, and strengthened collaboration among regulators and market participants.

He also warned that integration carries risks of contagion and imbalance, which require strong surveillance frameworks and macroeconomic coordination.

On Pakistan’s role, Mr. Ahmad said the country is well-positioned to implement structural reforms after recent economic stabilization. Under SBP’s Vision 2028 and the government’s Uraan Pakistan blueprint, initiatives are underway to expand financial access, promote innovation, and build a resilient, technology-driven financial ecosystem.

 Key steps include linking the Raast instant payment system with the Arab Monetary Fund’s Buna platform and developing a unified digital identity and KYC framework with SECP and PSX.

“The integration of our capital markets represents a historic opportunity to harness our own savings for development, strengthen financial stability, and amplify our collective voice globally,” Mr. Ahmad concluded, emphasizing the need for sustained political will, regulatory cooperation, and mutual trust.

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