Pakistan’s capital markets have recorded strong momentum as SECP reforms reportedly improved market confidence and corporate sector activity during FY2025-26. According to the Economic Survey 2025-26, the Pakistan Stock Exchange (PSX) showed major growth while regulatory changes supported investors and businesses.
The report stated that SECP reforms helped strengthen transparency, digital access and market development. Moreover, the rising performance of the KSE-100 Index highlighted improving economic indicators and increased participation in financial markets.
Pakistan Stock Exchange Shows SECP Reforms Impact
The KSE-100 Index increased by 18.4 percent between July and March FY2025-26, moving from 125,627 points to 148,743 points. Additionally, market capitalization reached Rs16.5 trillion during the period.
The Economic Survey noted that PSX performed among the better global stock markets during the nine-month period. Furthermore, average daily trading volume increased to 1.2 billion shares from 834 million shares a year earlier.
The growth came amid easing inflation, IMF programme reviews and stronger external sector indicators. Therefore, investors reportedly gained more confidence as economic conditions improved.
SECP Reforms Expand Corporate Growth
SECP reforms also supported expansion in Pakistan’s corporate sector. The survey revealed that 31,986 new companies were incorporated from July to March FY2025-26.
These registrations increased the total number of registered companies to 294,101. Meanwhile, newly incorporated companies recorded combined paid-up capital of Rs67 billion.
Information technology, trading and services sectors led new registrations. In addition, digital onboarding platforms and improved corporate disclosure systems helped businesses complete processes more efficiently.
SECP Reforms Improve Market Transparency
The Securities and Exchange Commission of Pakistan introduced several initiatives to improve ease of doing business. These measures included the T+1 settlement cycle, public offering reforms and investor facilitation platforms.
Furthermore, SECP worked on full digitization of share ownership for unlisted companies. The commission also focused on faster bank account opening and better inter-agency system integration.
According to the Economic Survey, these steps helped deepen capital markets while strengthening investor protection measures.
Debt Market Growth Supports SECP Reforms
Pakistan’s debt market also showed expansion during the review period. Six debt securities worth Rs12.45 billion were issued, while the government raised Rs5.1 trillion through the PSX-based debt auction platform.
Moreover, outstanding debt securities reached Rs133.6 billion by March 2026. These developments reflected broader participation in Pakistan’s financial markets.
The report stated that continued reforms could further improve market access and support institutional investors.
SECP Reforms Boost Mutual Funds And Islamic Finance
The non-banking financial sector continued growing as mutual funds expanded during FY2025-26. Assets under management reached Rs4.54 trillion, while the overall mutual fund industry grew to Rs5.64 trillion.
Additionally, voluntary pension fund assets increased to Rs138 billion. REIT schemes also expanded to 29 with a combined fund size of Rs173 billion.
Islamic finance maintained strong growth as well. SECP issued Shariah compliance certificates for 53 corporate Sukuk issues worth Rs229.6 billion.
SECP Reforms Shape Future Market Expansion
The Economic Survey stated that continued macroeconomic stability, regulatory improvements and investor protection will remain important for future growth.
Moreover, expanding the investor base and encouraging business participation will be key priorities. SECP reforms are expected to continue influencing Pakistan’s capital market development as companies and investors seek new opportunities.
