The Securities and Exchange Commission of Pakistan (SECP) has formed a high-level working group to overhaul the country’s corporate debt market, targeting lengthy issuance processes, high transaction costs and regulatory bottlenecks that have limited access to long-term financing.
The working group, chaired by SECP Commissioner Muhammad Ali Farid Khawaja, includes representatives from the Ministry of Finance, commercial banks, financial institutions, credit rating agencies and other key market stakeholders.
According to an SECP notification, the panel will conduct a comprehensive review of the corporate debt market and recommend practical measures to shorten issuance timelines, lower costs, standardize documentation and encourage greater market participation.
The group will review the existing credit rating framework, including its impact on issuance timelines, costs and market accessibility. It will recommend measures to make the ratings process more transparent, efficient and simpler.
The panel will also conduct an end-to-end review of the issuance process for privately placed and publicly offered corporate debt securities, covering regulatory, legal and operational hurdles.
It will assess the overall cost of issuing debt securities, including regulatory fees, professional charges, listing expenses and taxation, and recommend measures to streamline the process.
The working group will further review the legal and taxation framework governing corporate debt instruments and propose amendments where necessary to remove barriers to market development.
A key part of the review will focus on Pakistan’s Islamic debt market. The panel will examine the regulatory and Shariah framework governing Sukuk issuances, identify legal and operational issues contributing to higher costs or longer issuance timelines, and recommend standardized structures to support the growth of the Islamic corporate debt market.
SECP Chairman Dr. Kabir Ahmed Sidhu said the development and stability of the corporate debt market remain among the regulator’s key priorities, adding that a robust debt market would provide long-term capital for industry while also supporting the government’s financing needs.
The SECP said the working group will identify obstacles to the development of the corporate debt market and submit practical recommendations aligned with international best practices to strengthen Pakistan’s capital markets.
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