Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has stressed that regulators need to strike a balance between making it easier to do business and ensuring effective law enforcement to foster a transparent and fair business climate. He made these remarks while chairing a performance review meeting at the Securities and Exchange Commission of Pakistan (SECP) in Islamabad.
Key Reforms for Capital Markets
The minister highlighted that a business-friendly regulatory framework is vital for attracting investment, supporting entrepreneurship, and bolstering market confidence. The meeting focused on SECP's performance and key reforms aimed at deepening Pakistan's capital markets and facilitating both local and foreign investors.
SECP Chairman Dr. Kabir Ahmed Sidhu, along with Commissioners Imtiaz Haider, Muhammad Ali Farid Khwaja, Muzzafar Ahmed Mirza, and Zeeshan Rehman Khattak, attended the session. Advisors to the Finance Minister Khurram Schehzad and Omer M Khan were also present.
Record Company Registrations and Investor Growth
Dr. Sidhu briefed the minister on SECP's achievements, including a record 18,057 new company registrations and issuance of 149 new licenses to non-banking finance companies (NBFCs). The successful implementation of third-party motor insurance in Sindh recorded a 1,300 percent growth within three months.
During the last six months, SECP approved 10 Initial Public Offerings (IPOs) and added 127,907 new investors at the Pakistan Stock Exchange (PSX), raising the total investor base to over 583,052.
Enhanced Enforcement Actions
The minister was briefed on SECP's supervisory and enforcement actions, which included completion of 75 inspection reports, 13 investigations, issuance of 534 show-cause notices, and actions against illegal deposit-taking activities. SECP also issued 397 adjudication orders, resulting in penalties of over Rs. 20.857 million deposited into the Federal Consolidated Fund.
Senator Aurangzeb appreciated SECP's measures against non-compliant State-Owned Enterprises (SOEs) and emphasized improving governance standards. He directed SECP to keep Principal Accounting Officers of relevant ministries informed about compliance issues for timely corrective measures.
Digitalization and Simplification
The minister directed SECP to further simplify registration, licensing, and public offering processes through digitalization and reduced human intervention to encourage business growth and new listings. Dr. Sidhu said SECP's reform agenda focuses on strengthening People, Processes, and Technology to make regulatory services efficient, transparent, and responsive.
Key initiatives highlighted include IBAN-based KYC verification, CDC 'Asaan Connect' app, Broker Referral Program, KTrade-JazzCash partnership, restructuring of IFMP, a proposed Pakistan stock market-based ETF in China, and digital access to gold trading.
The finance minister appreciated SECP's reform initiatives and emphasized continued innovation, digital transformation, and regulatory facilitation to strengthen Pakistan's financial markets.
