SECP Launches CMDF to Boost Market Growth

Islamabad, August 20, 2025, 10:02 PM PKT — The Securities and Exchange Commission of Pakistan (SECP) has unveiled a transformative initiative, officially operationalizing the Capital Market Development Fund (CMDF) to tackle urgent needs of Pakistan’s capital market, aligning with international best practices, as per official announcement. The CMDF’s core mission is to boost financial literacy among retail investors, heighten public awareness of capital market opportunities, and drive financial inclusion, serving as an alternative funding source for national credit needs, while enhancing market participant capabilities and reaching untapped demographics.

The Pakistan Stock Exchange (PSX), National Clearing Company of Pakistan Limited (NCCPL), Central Depository Company (CDC), and Pakistan Mercantile Exchange (PMEX) have pledged PKR 30 million in seed capital plus 1% of annual revenue to fuel market development, managed by the Institute of Financial Markets of Pakistan (IFMP) under a Steering Committee (SC) with representatives from IFMP, PSX, NCCPL, CDC, and PMEX, ensuring governance and strategic direction. The CMDF launch unfolded at a consultative workshop, “Unlocking Capital Market Potential for Banks,” on August 18, led by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb. Web context on market reforms shows past stagnation, while posts found on X reflect optimism tempered by caution—some hail progress, others question impact. Critically, the narrative of “market uplift” may mask implementation hurdles—web data hints at past delays, and X sentiment suggests distrust in tangible results, pointing to potential challenges.