- Advertisement -
KARACHI, Aug 18 (APP):Federal Minister for Finance and Revenue Senator Mohammad Aurangzeb has stressed the need for realizing the potential of capital market for the macro-economic sustainable growth in the country.
While addressing a Consultative Workshop ‘Unlocking Capital Market Potential for Banks’ organized by the Securities and Exchange Commission of Pakistan (SECP) and Pakistan Banks Association (PBA) at a local hotel here on Monday, he suggested the participants of the workshop that a Capital Market Development Council be established to properly run the capital related affairs.
The Finance Minister Mohammad Aurangzeb speaking about the tax policy said that now it would be laid down by the Finance Ministry, for the next financial year 2026, instead of Federal Bureau of Revenue (FBR).
He said that the tariff policy had been announced by the government and tariff-related reforms were home-grown agenda of the government. He said it was important how we were moving from stability to sustainable growth.
He said that the country was moving in the right direction and making measures to achieve its goals.Aurangzeb lauding the State Bank of Pakistan (SBP) reforms said that they were very important and the private sector had to lead this country.
Later, talking to media persons, he said that Pakistan came out of Financial Action Task Force (FATF) grey list and she would stay out of it.
Replying to a question on exchange rate, he said that the government did not have any strategy on it and that was the SBP, which formulate exchange policy.
Replying to another question, he said that they were in ongoing conversation with International Monetary Fund (IMF).
Answering a question, he said that climate change, and population growth challenges to be addressed to reach where we want to be in 2047.
He further said that without dealing and negotiating with these two existential threats we would not be able to make our way into where we want to be in 2047.
To another question regarding floods in Khyber-Pakhtunkhwa, the Minister said that he could not say about the estimate of losses at this stage because rescue and relief work was still underway.
The Governor State Bank of Pakistan (SBP) Jameel Ahmad, earlier speaking to the participants of the Workshop, underscored the importance of well-developed, deep and diversified capital markets to complement the banking sector and support long-term, sustainable economic growth.
He noted that while macroeconomic conditions have improved with inflation falling and growth gradually recovering structural challenges such as low domestic savings persist.
With a savings rate of just 7.4 percent of GDP, compared to 27 percent in South Asia, country remains overly reliant on external financing, contributing to recurring external account pressures and boom-bust cycles, he said.
Ahmad emphasized the importance of robust capital markets in channeling domestic savings into productive sectors. He noted that well-developed, deep and diversified capital markets, complemented by a resilient banking system, are needed to support sustainable economic development of the economy.
The Governor outlined recent SBP reforms aimed at broadening participation in the country’s bond market, including the inclusion of non-bank institutions as Special Purpose Primary Dealers and expansion of Investor Portfolio Securities (IPS) accounts to micro-finance banks, the Central Depository Company (CDC) and, the National Clearing Company of Pakistan Limited (NCCPL).
These reforms open new investment avenues to millions of digital banking users and lay the foundation for broader market development, he noted.Despite progress in the government bond market, Ahmad expressed concern over the limited development of corporate debt and equity markets.
Outstanding corporate bonds account for less than one percent of GDP, with limited secondary market activity and low participation from non-financial sectors. Similarly, equity market penetration remains modest, with investor accounts and market capitalization lagging behind peer economies.
The Governor concluded by calling for coordinated efforts among regulators, financial organizations, government institutions and investors to promote financial literacy, expand participation, and build a transparent, innovation-friendly market ecosystem.
Chairperson of PSX Dr Shamshad Akhtar, Chairman SECP Akif Saeed, Farrukh Sabzwari, CEO PSX, Presidents, CEOs of banks and other stakeholders were also present on the occasion.