Islamabad: Retail investors can now invest directly in government debt securities, including Sukuks, marking an important step towards expanding retail participation in Pakistan’s financial markets. The Securities and Exchange Commission of Pakistan (SECP) conveyed this update to Finance Minister Muhammad Aurangzeb during his recent visit to the SECP headquarters.
Government debt securities include various instruments such as treasury bills (T-bills), Pakistan Investment Bonds (PIBs), Pakistan Government Ijara Sukuk, and other debt instruments issued by federal, provincial or local governments, in addition to statutory bonds. Bodies.
During the meeting, SEC officials shared the latest developments on the GDS, focusing on the regulatory framework designed to enhance access for retail investors. Finance Minister Aurangzeb praised the efforts of the Securities and Exchange Commission of India, but stressed the importance of improving liquidity in the secondary market to ensure a strong trading environment.
The government has already allowed money market schemes to invest in government securities traded on the Pakistan Stock Exchange (PSX). The move aims to encourage maximum participation of investment funds in Sukuks and other securities issued by the government, SEC officials informed the minister.
The Chairman of the Securities and Exchange Commission of Pakistan highlighted initiatives aimed at improving the ease of doing business in Pakistan, leveraging technological advancements through regulatory reforms, digital services, and enhancing access to finance. The Minister was also briefed on the efforts made to promote innovation in the market, including the regulatory sandbox and support for startups.
Finance Minister Aurangzeb expressed keen interest in the SEC’s sustainability-focused initiatives, particularly the ESG Sustainability Portal. He also praised the Authority’s investor-focused efforts, such as the Central Gateway Portal, Amlak Financial Company, and single window solutions for companies. These measures are designed to simplify processes such as filing digital documents and facilitate investors.
The Minister urged the SEC to raise awareness about these initiatives to maximize their impact on stakeholders. He also called for closer cooperation with the government to effectively introduce pension reforms and strengthen cooperation with other regulatory bodies in order to provide seamless financial services. Moreover, he assured the government’s full support for legislative reforms aimed at strengthening the financial sector in Pakistan.