Pakistan pushes bond-market reforms as SECP seeks broader investor base

Pakistan is pursuing reforms to strengthen its local-currency bond market, facilitate investment and expand access to capital markets, Securities and Exchange Commission of Pakistan (SECP) Chairman Dr. Kabir Ahmed Sidhu said Thursday.

Speaking at a gong ceremony marking the listing of Naya Nazimabad Apartment REIT on the Pakistan Stock Exchange (PSX), Sidhu said the development represented an important milestone for Pakistan’s real estate and capital markets. The REIT was listed on the PSX on September 17.

Finance Minister Muhammad Aurangzeb, the State Bank of Pakistan governor and representatives of the capital market attended the ceremony, while Prime Minister Shehbaz Sharif participated online.

Sidhu congratulated Aurangzeb on Pakistan’s USD3 billion sovereign Eurobond issuance, which was marked at the London Stock Exchange earlier this week.

He said the government was also taking steps to strengthen Pakistan’s local-currency bond market. The Finance Division published a strategic action plan for development of the market on September 29.

How can REITs and public offerings broaden investment access?

Sidhu said REITs could help document Pakistan’s more than PKR7 trillion real estate sector while giving ordinary investors access to property investment through regulated capital-market products. He said the SECP was introducing reforms to facilitate investment and strengthen the role of REITs in channeling capital into the sector.

The Naya Nazimabad Apartment REIT listing would help broaden investment opportunities and strengthen the role of capital markets in financing real estate, he said.

Sidhu said 13 public offerings had raised PKR26 billion through the capital market so far in 2026, with issuers across manufacturing, agriculture, real estate, energy and technology tapping the market for financing.

SECP had previously described Naya Nazimabad Apartment REIT as the 13th public offering approved in 2026.

Sidhu said the number of investors had increased by 36% following improvements in market access, with 168,000 new investors joining since January and taking the total investor base to 630,000.

He said the SECP was also working on a major initiative aimed at further increasing participation in Pakistan’s capital markets.

What other regulatory reforms is SECP pursuing?

Sidhu said the SECP had achieved several milestones during the past eight months and proposed amendments to laws aimed at improving ease of doing business and supporting market development.

Proposed amendments to insurance and company laws were under consideration by Parliament, he said. The regulator had also proposed significant changes to regulations governing the nonbanking financial sector.

Digitization of the regulatory system, easier compliance with legal requirements and improved market access were among the SECP’s priorities, Sidhu said, alongside enforcement aimed at improving transparency and protecting investors.

The SECP registered a record 43,559 new companies during FY2026, up 24% from the previous fiscal year and taking the total number of registered companies to 301,615.

Sidhu said the regulator had also cleared its adjudication backlog.

He said the regulator had resolved several long-standing issues faced by foreign investors, particularly Chinese investors.

Sidhu said the government’s Apna Ghar housing program had also been expanded to nonbank financial institutions, widening the channels through which housing finance could be provided.