Pakistan has officially launched a new Capital Market Development Fund (CMDF) with an initial investment of Rs. 12 crore to increase investor participation and support stock market growth in 2026.
The agreement was signed by major capital market institutions under the supervision of the Securities and Exchange Commission of Pakistan (SECP) during a ceremony held in Islamabad.
The initiative includes participation from the Pakistan Stock Exchange, Central Depository Company, National Clearing Company of Pakistan Limited, Pakistan Mercantile Exchange, and the Institute of Financial Markets of Pakistan.
Finance Minister Muhammad Aurangzeb attended the event and highlighted the importance of strengthening Pakistan’s domestic capital market during ongoing regional and economic challenges.
SECP Chairman Dr. Kabir Ahmed Sidhu said investor participation in Pakistan’s stock market remains below one percent of the total population despite recent growth in the equity market.
Officials revealed that regulators are now targeting an increase in the investor base to 2.5 million through financial reforms, digital facilitation, and simplified trading account procedures.
Authorities are also improving Know Your Customer (KYC) and Anti Money Laundering (AML) systems to make stock trading easier for retail investors while maintaining regulatory compliance.
According to market data shared during the ceremony, nearly 24,000 new investors entered Pakistan’s stock market in April 2026 despite regional uncertainty and economic pressure.
Officials confirmed that the CMDF will initially start with Rs. 120 million funding, while participating institutions will contribute one percent of their annual revenue for long-term sustainability.
The new investment fund will mainly focus on financial literacy, investor awareness, women and youth participation, retail trading growth, and strengthening Pakistan’s overall capital market infrastructure.
Experts believe the initiative could improve confidence in Pakistan’s financial sector and encourage more citizens to invest in stocks, trading, and long-term wealth creation opportunities.