Chairman SECP unveils reform agenda to expand investor base, strengthen capital markets

KARACHI, Jun 16 (APP): The Chairman, Securities and Exchange Commission of Pakistan (SECP), Dr. Kabir Ahmed Sidhu, Tuesday, unveiled an ambitious reform agenda aimed at expanding Pakistan’s investor base, strengthening financial literacy, and accelerating the development of the country’s capital markets.

Dr. Kabir Ahmed Sidhu, addressing the ceremony during his first official visit to the Pakistan Stock Exchange (PSX), said that SECP was targeting a significant increase in the number of investors, with a long-term objective of expanding the investor base to 2.5 million investors.

He underscored the significance of broadening investor participation, particularly among young Pakistanis, for promoting savings, wealth creation, and inclusive economic growth, and stated, “Financial literacy is one of the most powerful tools for expanding participation in capital markets. We want to create opportunities for young Pakistanis to learn, invest, and participate in wealth creation through accessible education and simplified investment processes.”

The SECP Chairman outlined the Commission’s reform agenda built around People, Processes and Technology. He announced plans to revitalize the Institute of Financial Markets of Pakistan (IFMP), launch short online financial education courses, expand investor awareness campaigns across the country, and simplify investor onboarding through digital channels.

He also highlighted ongoing reforms in the insurance sector, including a new legislative framework that is expected to modernize the industry, enhance competition, and improve insurance penetration.

Managing Director PSX Farrukh H. Sabzwari, in his welcome address, said that PSX has achieved a market capitalization of Rs 20 trillion, average daily trading volumes of 57 million shares, and recorded 11 IPOs this fiscal year.

Over the past three years, PSX has delivered 95%, 57%, and 44% returns, ranking among the top frontier markets, he stated, adding that the investor base of PSX has expanded to 563,000 unique investor numbers (UINs), with Millennials and Gen Z driving participation through awareness and education initiatives.

SECP Commissioner Ali Farid Khawaja said Pakistan’s capital market has demonstrated remarkable resilience despite domestic and global economic challenges while improved macroeconomic stability, regulatory reforms, and growing investor confidence have contributed to strong market performance over the past year.

Following the ceremony, Dr. Sidhu chaired a meeting of the PSX Board of Directors to discuss key initiatives for the future development of Pakistan’s capital markets, including the launch of Exchange Traded Funds (ETFs) linked to the Chinese and Saudi markets, measures to improve listings on the GEM Board, development of derivatives products, and enhancement of market surveillance systems.

The Board also reviewed proposals to improve operational efficiency across PSX, CDC and NCCPL through better use of technology and human resources as well as strategies to promote Pakistan’s capital market among overseas Pakistanis and foreign investors.