A developed capital market is essential for sustainable economic growth, veteran businessman Arif Habib said on Wednesday. Speaking at the Securities and Exchange Commission of Pakistan's (SECP) Talk Series, Habib urged the country to deepen investor participation through long-term investing, financial literacy and continued market reforms.
What did Arif Habib say about Pakistan's capital markets?
Habib said capital markets play a central role in mobilizing savings, financing businesses and creating jobs. He drew on more than five decades of experience to argue that discipline, patience and long-term thinking remain the foundation of successful investing, regardless of how trading technology evolves.
The session was attended by SECP Chairman Dr. Kabir Ahmed Sidhu, along with commissioners, market institution representatives, academics and business leaders. Sidhu said the Talk Series is designed to institutionalize knowledge-sharing by connecting regulators with experienced market practitioners to support evidence-based policymaking.
What reforms is the SECP introducing to expand investor access?
Sidhu highlighted ongoing SECP reforms, including digital investor onboarding and the implementation of the T+1 settlement cycle. He said the regulator is working to expand Pakistan's investor base to 2.5 million people through greater financial inclusion and easier market access.
"Our objective is to build a capital market ecosystem that is transparent, accessible and aligned with global standards," Sidhu said.
How have Pakistan's capital markets performed over time?
Habib traced the transformation of Pakistan's capital markets from open-outcry trading floors to today's technology-driven marketplace. He said the Pakistan Stock Exchange has delivered an average annual return of about 22% over the past 22 years, along with a 14% dollar-denominated return over the last five years.
He stressed that market volatility is temporary, while long-term investment in fundamentally strong companies builds sustainable wealth over time. Habib also pointed to the sector's role in strengthening corporate governance and generating employment across brokerage, asset management, investment banking, research, fintech and advisory services.
Why does Arif Habib emphasize financial literacy?
Habib called for greater financial literacy among young Pakistanis to broaden participation in the country's formal capital markets. He framed literacy as a precondition for expanding investor access, since informed investors are more likely to commit to long-term positions rather than reacting to short-term volatility.
The session closed with a question-and-answer segment, followed by the presentation of a commemorative shield to Habib.
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