KARACHI: Supporting the multi-stage financing needs of start-ups and small and medium enterprises (SMEs), an increase in the number of retail investors and strengthening the role of institutional investors will be the core constituents of the future road map, said Securities and Exchange Commission of Pakistan (SECP) Chairman Aamir Khan.
At a workshop on Financial Market Development 2020-25 held for consultation with the stakeholders on Thursday, the SECP chief emphasised that the road map must entail a broad and deep consensus between the SECP and relevant stakeholders in the public and private sectors.
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The new strategy would focus on creating an active bond market and promoting infrastructure-financing vehicles, he said. The long-term road map would focus on demand and supply measures to broaden and deepen the financial system in Pakistan.
Khan affirmed that building a sound, efficient and cost-effective regulatory environment was the foremost obligation of the SECP.
“I am equally passionate about ensuring that it empowers business growth. One must not be sacrificed at the cost of other,” he said. “We need to be fiercely vigilant in the pursuit of transparency, yet be tirelessly focused on reducing regulatory barriers and cost of doing business.”
Speaking on the occasion, SECP Commissioner Securities Market Shauzab Ali gave his views on the SECP’s approach to the reform plan being implemented by the regulator and discussed its challenges and opportunities.
Asian Development Bank (ADB) Deputy Country Director for Pakistan Asif Cheema stated that the proposed financial market development programme was in line with the ADB Strategy 2030. He elaborated that the ADB strategy prioritised the development of financial sector and capital markets to support the uplift of private sector and enhance financial stability.
“This programme will build on the ADB’s earlier support for development of Pakistan’s capital markets over the past two decades,” he said and reiterated the need for government ownership of implementation of the master plan.
Representatives of the ADB, State Bank of Pakistan, SECP, stock exchange, Central Depository Company, National Clearing Company and market participants attended the brainstorming session.
Published in The Express Tribune, December 6th, 2019.