Debt capital development: SECP proposes operational level body

The Securities and Exchange Commission of Pakistan (SECP) has proposed an operational level committee consisting of Pakistan Stock Exchange (PSX), banks, securities brokers and other stakeholders to identify bottlenecks and suggest measures for development of debt capital market in Pakistan.
According to the Capital Market Development Plan (2016-18) issued by the SECP, the commission has also proposed debt capital market forum under the leadership of Finance Minister so that all policy level matters pertaining to the debt capital market are addressed at this forum.
The SECP said the development of debt capital market efficient and liquid debt markets could help mitigate the adverse impact of financial crises by providing an alternative source of financing. In Pakistan, the debt market has largely remained underdeveloped and effective measures need to be put in place to bridge this gap with other regional and modern economies.
This Plan envisages implementation of following initiatives and measures: i) Co-ordination Mechanism: There are three major stakeholders at the policy and regulatory level for the development of a robust and vibrant debt market ie Ministry of Finance (MOF), SECP and State Bank of Pakistan (SBP).
It is imperative that a permanent and formal co-ordination mechanism in shape of debt capital market forum is put in place under the leadership of Finance Minister so that all policy level matters are addressed at this forum. At the same time, there should be an operational level committee consisting of PSX, banks, securities brokers and other stakeholders to identify bottlenecks and take or suggest measures for removal covering all aspects like legal, regulatory, operational, product, etc. Efforts will be made to put in place the above so that co-ordinated efforts are made for the development of debt capital market including but not limited to areas like strengthening of the public debt office at MOF; primary market of government and corporate debt instruments; secondary market trading of government and corporate debt instruments; revamping of National Saving Scheme; new product development in particular in sphere of corporate debt and for overseas Pakistanis; awareness and distribution mechanism for government and corporate debt instruments, SECP added.