'SECP building sound, cost-effective regulatory environment'

The Securities and Exchange Commission of Pakistan's foremost obligation remains building a regulatory environment that is sound, efficient and cost-effective.

This was affirmed by SECP Chairman Aamir Khan in his welcoming remarks at a workshop for stakeholder consultations on Financial Market Development 2020-25 jointly organized by SECP and the Asian Development Bank (ADB) here Thursday.

The long-term roadmap will be focusing on demand and supply measures to broaden and deepen the financial system in Pakistan.

Senior level representatives from the ADB, State Bank of Pakistan, SECP and representatives of stock exchange, central depository, national clearing company and market participants attended the brainstorming session.

"Yet, I am equally passionate about ensuring that it is empowering for business growth", Chairman SECP said adding that one must not be sacrificed at the cost of the other. "We need to be fiercely vigilant in the pursuit of transparency, yet be tirelessly focused on reducing regulatory barriers and cost of doing business," he said.

Regarding the projected roadmap, Aamir Khan opinioned that supporting multi-stage financing needs of start-ups and SMEs, increasing the number of retail investors, strengthening the role of institutional investors, creating an active bond market and promoting infrastructure-financing vehicles would be core constituents of the future roadmap. However, he emphasized, the roadmap must entail a broad and deep consensus between the SECP, and other relevant stakeholders in the public and private sectors.

SECP Commissioner Securities Market, Shauzab Ali, gave his views on SECP's approach to the reform plans already being undertaken by the regulator, challenges and opportunities.

A team of international experts facilitated the workshop with a view to consolidate market feedback on the various on the supply and demand side constraints, along with recommendations for reform.

The ADB Deputy Country Director for Pakistan, Asif Cheema, stated that the proposed Financial Markets Development Program is in line with ADB's Strategy 2030, which prioritizes the development of the financial sector and capital markets to support the development of the private sector and enhance financial stability.

This program will build upon ADB's earlier support for development of Pakistan's capital markets over the past two decades. Asif Cheema also reiterated the need for government ownership for implementation of the master plan.