KARACHI: Chairperson of the Securities and Exchange Commission of Pakistan (SECP) Dr Kabir Ahmed Sidhu unveiled a sweeping reform agenda during his first official visit to the Pakistan Stock Exchange (PSX) on Tuesday.
He outlined plans to grow registered investors to 2.5 million and expressed how the SECP would expand Pakistan’s investor base, strengthen financial literacy and accelerate capital market development.
Addressing the gong ceremony after ringing the trading bell, Dr Sidhu said broadening investor participation, particularly among young Pakistanis, was essential for promoting savings, wealth creation and inclusive economic growth.
“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,” he said.
The SECP chairperson outlined a reform framework built around people, processes and technology. Plans include revitalising the Institute of Financial Markets of Pakistan (IFMP), launching short online financial education courses, expanding investor awareness campaigns nationwide, and simplifying investor onboarding through digital channels. He also flagged ongoing reforms in the insurance sector, including a new legislative framework aimed at modernising the industry and improving insurance penetration.
PSX Managing Director Farrukh H Sabzwari, welcoming the chairman, noted that the exchange had achieved a market capitalisation of Rs20 trillion, with average daily trading volumes of 57 million shares and 11 IPOs recorded this fiscal year, the third highest in 25 years. He added that the investor base had grown to 563,000 unique investor numbers, with Millennials and Gen Z driving participation. The PSX has delivered returns of 95 per cent, 57 per cent and 44 per cent over the past three years, ranking among the top frontier markets globally.
SECP Commissioner Ali Farid Khawaja said the capital market has demonstrated remarkable resilience despite domestic and global economic challenges, with improved macroeconomic stability and regulatory reforms underpinning strong performance over the past year.
Following the ceremony, Dr Sidhu chaired a PSX Board of Directors meeting at which discussions covered the launch of exchange traded funds 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 the PSX, CDC and NCCPL, and considered strategies to attract overseas Pakistanis and foreign investors. Dr Sidhu assured the Board of SECP’s full support in advancing the shared objective of a deeper, more efficient and investor-friendly capital market.
