Pakistan’s leading capital market institutions have signed an agreement to establish the Capital Market Development Fund (CMDF), an industry-supported initiative designed to boost investor participation in the country’s financial markets. The fund will begin operations with an initial investment of Rs. 120 million.
The initiative has been launched under the supervision of the Securities and Exchange Commission of Pakistan (SECP) in collaboration with the Pakistan Stock Exchange (PSX), Central Depository Company (CDC), National Clearing Company of Pakistan Limited (NCCPL), Pakistan Mercantile Exchange (PMEX), and the Institute of Financial Markets of Pakistan (IFMP).
Speaking at the signing ceremony in Islamabad, Finance Minister Muhammad Aurangzeb said recent regional developments highlighted the importance of strengthening Pakistan’s economic resilience by mobilizing domestic capital resources.
SECP Chairman Dr. Kabir Ahmed Sidhu noted that investor participation in Pakistan’s capital market remains below one percent of the population, despite strong market growth in recent years. He said the regulator aims to increase the investor base to 2.5 million through ongoing reforms and improved facilitation measures.
Officials also shared plans to simplify investor onboarding processes and streamline Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures to make market access easier for retail investors while maintaining regulatory compliance.
According to data presented during the event, nearly 24,000 new investors joined the market in April 2026, while equity markets continued to perform positively despite economic and regional uncertainties.
Under the agreement, participating institutions will contribute one percent of their annual revenues to ensure the long-term sustainability of the CMDF.
The fund will focus on promoting investor awareness, improving financial literacy, expanding retail investor participation, encouraging financial inclusion among women and youth, and strengthening institutional capacity within Pakistan’s capital markets.
