ISLAMABAD: Pakistan on Wednesday launched a capital market development fund (CMDF), a coordinated industry initiative aimed at expanding the country’s investor base to 2.5 million and deepening financial markets, as regulators push to lift participation still below 1.0 per cent of the population.
The fund was established through an agreement signed by key market institutions under the Securities and Exchange Commission of Pakistan (SECP), including the Pakistan Stock Exchange, Central Depository Company, National Clearing Company of Pakistan Limited, Pakistan Mercantile Exchange and Institute of Financial Markets of Pakistan.
Finance Minister Muhammad Aurangzeb, who attended the signing ceremony in Islamabad, said Pakistan must mobilise domestic capital and reduce reliance on external resources amid rising regional and global uncertainties.
“We must rely on our own resources and strengthen self-sufficiency. Capital markets can play a vital role in providing the financing needed for economic independence,” he said.
Aurangzeb said the government remained committed to economic stability, fiscal discipline and structural reforms, noting that key economic indicators were improving despite external pressures. He also pointed to the resilience of the stock market as a sign of growing investor confidence.
SECP Chairperson Kabir Ahmed Sidhu said the regulator aims to more than double the investor base to 2.5 million through reforms, simplified onboarding and stronger investor outreach. He identified low financial literacy as a major barrier, with participation still limited and awareness efforts fragmented.
Initial data shared at the event showed about 24,000 new investors entered the market in April, while equities maintained positive momentum. Officials said the CMDF would be funded through contributions from market institutions and focus on financial literacy, retail participation, inclusion and institutional capacity building.
