State Bank of Pakistan Governor Jameel Ahmad has stressed the critical importance of enhanced regional collaboration and innovation to develop integrated capital markets throughout Asia. He delivered this message during his keynote speech at the International Capital Market Conference 2025 in Karachi on Tuesday.
Why Regional Integration Matters Now
The governor addressed the conference theme "Regional Integration and Innovation in Capital Markets: A New Era of Cooperation" with a clear warning. "In an increasingly interconnected world, regional market integration is not an option—it is a necessity," Ahmad stated firmly. He explained that no single nation can effectively tackle current economic and financial challenges working alone.
Governor Ahmad outlined three crucial aspects of capital market integration during his address:
- The fundamental importance of regional cooperation
- Practical methods to achieve effective integration
- Pakistan's strategic position to contribute significantly
Benefits and Successful Models
Integrated regional capital markets facilitate smoother capital movement, standardized regulations, and expanded investment possibilities, according to the SBP chief. He highlighted that for economies struggling with low savings rates and limited banking capacity—particularly for climate and infrastructure projects—these unified markets can become essential financing channels.
"When capital is allocated more efficiently, growth becomes more inclusive, resilient, and sustainable," Ahmad emphasized.
The governor pointed to successful existing models like the Eastern Caribbean Securities Market and the ASEAN+3 Asian Bond Markets Initiative as evidence. These initiatives have demonstrated that integration can reduce transaction costs, spread risk, and widen investor participation. He revealed that ASEAN+3's bond markets expanded dramatically from 88% of GDP in 2002 to 133% in 2025, showcasing the power of collective regional action.
Pakistan's Role and Strategic Initiatives
Governor Ahmad confirmed that Pakistan is now better positioned to implement structural reforms following recent economic stabilization. The country is actively working under SBP's Vision 2028 and the government's Uraan Pakistan blueprint to broaden financial access, encourage innovation, and build a robust, technology-focused financial ecosystem.
He detailed several key initiatives SBP is advancing for both regional and domestic capital market integration:
- Expanding Pakistan's Raast instant payment system internationally through connection with the Arab Monetary Fund's Buna platform
- Developing a unified digital identity and KYC framework with SECP and PSX to simplify investor access across banking, insurance, and capital markets
The governor concluded with an inspiring vision: "The integration of our capital markets represents a historic opportunity—to harness our own savings for our development, to strengthen financial stability, and to amplify our collective voice in the global financial system."
Governor Ahmad also acknowledged the Securities and Exchange Commission of Pakistan for organizing this landmark event and creating a valuable platform for collaboration among policymakers, regulators, and market participants from across the region.
