Pakistan’s leading capital market institutions have joined hands to establish the Capital Market Development Fund (CMDF), a new industry-led initiative designed to expand investor participation and strengthen financial literacy across the country.
The fund has been launched under the supervision of the Securities and Exchange Commission of Pakistan (SECP), with collaboration from the Pakistan Stock Exchange, Central Depository Company, National Clearing Company of Pakistan Limited, Pakistan Mercantile Exchange, and the Institute of Financial Markets of Pakistan.
Finance Minister Muhammad Aurangzeb attended the signing ceremony in Islamabad, emphasizing that evolving regional challenges highlight the importance of mobilizing domestic capital and enhancing Pakistan’s economic resilience through stronger local investment participation.
Speaking at the event, SECP Chairman Dr. Kabir Ahmed Sidhu noted that less than one percent of Pakistan’s population currently participates in capital markets despite recent growth in equity trading activity. Regulators aim to significantly expand this base to approximately 2.5 million investors through regulatory reforms and improved market accessibility.
Authorities said investor onboarding procedures are being simplified, while Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements are being streamlined to make entry easier for retail investors without compromising compliance standards.
Market figures presented during the ceremony showed that nearly 24,000 new investors entered Pakistan’s equity market in April 2026, reflecting continued market momentum despite economic and regional uncertainties.
The CMDF will start operations with an initial contribution of Rs. 120 million. Participating institutions have also agreed to allocate one percent of their annual revenues to ensure the fund’s long-term sustainability.
Officials said the initiative will prioritize investor awareness programs, financial education, increased retail market participation, greater financial inclusion for women and youth, and capacity building across Pakistan’s capital market ecosystem.
