Govt Launches Capital Market Fund to Boost Investor Base to 2.5mn

ISLAMABAD: Pakistan on Wednesday launched the 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.

The fund was established through an agreement signed by key market institutions operating under the Securities and Exchange Commission of Pakistan (SECP), including the Pakistan Stock Exchange (PSX), Central Depository Company (CDC), National Clearing Company of Pakistan Limited (NCCPL), Pakistan Mercantile Exchange (PMEX), and the Institute of Financial Markets of Pakistan (IFMP).

Speaking at the signing ceremony in Islamabad, Finance Minister Muhammad Aurangzeb said Pakistan must mobilize domestic capital and reduce dependence on external resources amid growing regional and global economic challenges.

“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,” Aurangzeb said.

The finance minister added that the government remains committed to economic stability, fiscal discipline, and structural reforms, noting that key economic indicators are showing improvement despite external pressures. He also highlighted the resilience of the stock market as a sign of increasing 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 processes, and stronger investor outreach programs.

He identified low financial literacy as one of the biggest barriers to wider participation in the capital market, adding that awareness campaigns and investor education efforts have remained fragmented.

According to initial data shared during the event, around 24,000 new investors entered the market in April, while equities continued to maintain positive momentum.

Officials said the CMDF will be financed through contributions from market institutions and will primarily focus on improving financial literacy, encouraging retail participation, promoting financial inclusion, and strengthening institutional capacity in Pakistan’s capital markets.