SECP forms high-level working group to reform corporate debt market

August 04, 2026 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has constituted a high-level Working Group to undertake a comprehensive review of the corporate debt market and recommend practical reforms aimed at improving market efficiency, reducing issuance timelines and costs, and broadening market participation.

According to an official notification issued by the Securities Market Division's Policy, Regulation and Development Department on July 30, 2026, the initiative follows feedback from market participants highlighting lengthy issuance timelines and the high cost of issuing corporate debt instruments through both private placements and public offerings as major impediments to the development of Pakistan's corporate debt market.

The SECP said the Working Group will review the existing regulatory framework governing the issuance of corporate debt securities and Sukuk, identify bottlenecks hindering market development, and propose practical recommendations to make the issuance process faster, simpler and more cost-effective.

As part of its mandate, the Working Group will review the existing credit rating framework to identify measures for improving efficiency, transparency and market confidence.

It will assess the impact of credit rating requirements on issuance timelines, costs and market accessibility, and recommend reforms to simplify the rating process and facilitate innovation in rating products.

The group will also conduct an end-to-end review of the issuance process for privately placed and publicly offered corporate debt securities.

This includes assessing the time required at each stage of the issuance process, identifying regulatory, legal and operational bottlenecks, reviewing the complete cost of issuance including regulatory fees, professional charges, listing expenses, taxation and other transaction costs and recommending measures to rationalize these costs.

In addition, the Working Group will review legal, regulatory and documentation requirements, draft standardized documentation where required, and propose amendments to the regulatory framework to improve the efficiency of the issuance process.

It will also review the taxation framework applicable to corporate debt instruments and recommend measures to reduce tax-related impediments and enhance market attractiveness. The group will consult relevant market participants and benchmark Pakistan's framework against international best practices.

For the development of the Islamic debt market, the Working Group will review the regulatory and Shariah framework governing Sukuk issuances, identify Shariah, legal and operational impediments contributing to higher costs or longer issuance timelines, and recommend reforms to facilitate standardized structures, improve market efficiency and expand the Islamic corporate debt market.

The Working Group will be chaired by SECP Commissioner Muhammad Ali Farid Khwaja. Its members include Farrukh H. Sabzwari, CEO of Pakistan Stock Exchange Limited; Maheen Rehman, CEO of InfraZamin Pakistan;

Salman Ali Jafri; Syeda Sharmeen Ahmed, Managing Director Corporate Finance at Topline Securities; Muhammad Farid Alam, CEO of AKD Securities Limited; a representative of Askari Bank Limited;

Badiuddin Akbar, CEO of Central Depository Company; a representative of PACRA Credit Rating Agency; a representative of Mohsin Tayebaly & Co.; Muhammad Khaliq-uz-Zaman from the Debt Management Office, Ministry of Finance; and Imran Inayat Butt, Executive Director, SECP, who will serve as coordinator.

The notification states that the Working Group may co-opt any additional expert or institution, where required, to facilitate its work and will submit its report within 45 days of its constitution.

SECP Chairman Dr. Kabir Ahmed Sidhu said that the development and stability of the corporate debt market is a key priority, adding that a robust debt market will provide long-term capital for industry and the government.

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