Capital market reforms critical to economic revival: interim govt

Bankers, DFIs agreed on need for establishment of private equity, venture funds to serve as catalyst for economic revival

By Our Correspondent
October 01, 2023
Caretaker Finance Minister Shamshad Akhtar chairs meeting on capital market reforms on September 30, 2023. —SECP

KARACHI: Caretaker Federal Minister for Finance, Revenue, Economic Affairs Dr Shamshad Akhtar Saturday said that capital market reforms are critical component of the caretaker government’s economic revival programme.

The initiatives are aimed to promote growth and development by harnessing the potential of capital market institutions to diversify sources of financing and exploiting innovative financing modalities, she said while chairing a meeting with the Securities Exchange Commission of Pakistan (SECP) chairman, bankers and heads of development finance institutions (DFIs), says a press release.

The bankers and DFIs agreed on the need for establishment of private equity and venture funds to serve as a catalyst for economic revival.

The SECP chairman reinforced the commission’s commitment and for creating an enabling regulatory environment.

The finance minister appreciated SECPs’ active engagement and encouraged banks and DFIs to set the stage for this collaborative effort and fast track the setting up of the private funds to support industrial development.

The caretaker finance minister appreciated initiatives for seeking investments from local financial institutions, institutional investors, government DFIs, and corporates, with the potential to attract foreign capital, particularly from climate and ESG-focused international institutional investors.

She emphasised that the time is of the essence and hectic efforts should be made to bring these propositions to fruition. She underscored that these ground-breaking initiatives would contribute to restoring market confidence and send a clear message to the global market and foreign investors that Pakistan is open for business and poised for economic growth.

Moving forward collaboratively there will be an effort to remove the impediments facing the establishment of these funds, Dr Shamshad added.