Dr. Sidhu unveils ambitious agenda to expand investor base, deepen capital market

KARACHI, June 16: The Chairman, Securities and Exchange Commission of Pakistan (SECP), Dr. Kabir Ahmed Sidhu unveiled an ambitious reform agenda aimed at expanding Pakistan’s investor base, strengthening financial literacy, and accelerating the development of the country’s capital markets during his first official visit to the Pakistan Stock Exchange (PSX).
Addressing the Gong Ceremony after ringing the trading bell to mark the commencement of trading, Dr. Sidhu said SECP is targeting a significant increase in the number of investors, with a long-term objective of expanding the investor base to 2.5 million investors. He emphasized that broadening investor participation, particularly among young Pakistanis, is 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,” said Dr. Sidhu.
The SECP Chairman outlined the Commission’s reform agenda built around People, Processes and Technology. He announced plans to revitalize the Institute of Financial Markets of Pakistan (IFMP), launch short online financial education courses, expand investor awareness campaigns across the country, and simplify investor onboarding through digital channels. He also highlighted ongoing reforms in the insurance sector, including a new legislative framework that is expected to modernize the industry, enhance competition, and improve insurance penetration.
Welcoming the SECP Chairman, PSX Managing Director Farrukh H. Sabzwari said PSX has achieved a market capitalization of PKR 20 trillion, average daily trading volumes of 57 million shares, and recorded 11 IPOs this fiscal year, the third highest in 25 years. Yesterday’s listing of SLM Tyres Limited was a historic milestone, filling the trading floor with unprecedented energy and reaffirming investor confidence. Our investor base has now expanded to 563,000 unique investor numbers (UINs), with Millennials and Gen Z driving participation through awareness and education initiatives. Globally, Pakistan’s markets remain competitive. Over the past three years, PSX has delivered 95%, 57%, and 44% returns, ranking among the top frontier markets.
SECP Commissioner Ali Farid Khawaja said Pakistan’s capital market has demonstrated remarkable resilience despite domestic and global economic challenges. He noted that improved macroeconomic stability, regulatory reforms, and growing investor confidence have contributed to strong market performance over the past year. He emphasized that sustaining reform momentum, broadening market participation, and strengthening market infrastructure would be critical to unlocking the next phase of growth in Pakistan’s capital markets.
Following the ceremony, Dr. Sidhu chaired a meeting of the PSX Board of Directors. The Board discussed key initiatives for the future development of Pakistan’s capital markets. Discussions included the launch of Exchange Traded Funds (ETFs) 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 PSX, CDC and NCCPL through better use of technology and human resources. Participants discussed strategies to promote Pakistan’s capital market among overseas Pakistanis and foreign investors. Dr. Kabir Ahmed Sidhu assured the Board of SECP’s full support in advancing these initiatives and achieving the shared objective of a deeper, more efficient and investor-friendly capital market.