Finance Minister Senator Muhammad Aurangzeb has directed authorities to expedite capital market reforms, with a strong focus on developing Pakistan's corporate debt market to reduce reliance on bank financing and broaden long-term funding options for businesses, particularly small and medium enterprises (SMEs).

Chairing a meeting of the Capital Market Development Council (CMDC), the finance minister said Pakistan's equity market had made encouraging progress, but the corporate debt market remained significantly underdeveloped relative to the country's financing needs. He stressed that a deeper debt market would diversify funding sources and strengthen the overall financial system.

The meeting reviewed an external study on developing Pakistan's local currency-linked bond market, covering reforms in sovereign financing, market infrastructure, secondary markets, hedging instruments and the broader capital market framework. Aurangzeb directed officials to ensure the study delivers practical, evidence-based recommendations aligned with international best practices.

The council also examined challenges faced by listed companies in accessing the corporate debt market. The finance minister called for greater engagement with SMEs and growth-oriented firms, while directing the Securities and Exchange Commission of Pakistan (SECP) and the Pakistan Stock Exchange (PSX) to establish dedicated Debt Desks to oversee implementation and improve market access.

Aurangzeb further instructed regulators to simplify the corporate debt issuance process through a one-window listing framework supported by digital integration and standardized procedures. The meeting also discussed expanding Pakistan's Islamic capital market, promoting Sukuk, green finance and sustainable investment instruments, alongside taxation reforms, financial literacy and digital investment platforms.