Pakistan Launches New Fund With Rs. 12 Crore Investment to Encourage Trading
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Key capital market institutions in Pakistan have signed an agreement to establish the Capital Market Development Fund (CMDF), a new industry-backed initiative aimed at increasing investor participation with an initial Rs. 12 crore investment.
The fund was launched under the supervision of the Securities and Exchange Commission of Pakistan with 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 signing ceremony in Islamabad and said recent regional tensions had reinforced the need for Pakistan to mobilize domestic capital and strengthen economic self-reliance.
During the ceremony, SECP Chairman Dr. Kabir Ahmed Sidhu said investor participation in Pakistan’s capital market remains below one percent of the population despite recent market growth. He added that regulators are targeting an increase in the investor base to 2.5 million through reforms and facilitation measures.
Officials said onboarding procedures are being simplified while Know Your Customer and Anti Money Laundering frameworks are also being streamlined to improve access for retail investors without weakening regulatory safeguards.
Market data shared during the event showed around 24,000 new investors entered the market in April 2026, while equity markets maintained positive momentum despite regional and economic uncertainty.
According to officials, the CMDF will begin with an initial contribution of Rs. 120 million, while participating institutions will contribute one percent of their annual revenues to support long term sustainability of the fund.
The initiative will focus on investor awareness, financial literacy, expansion of retail participation, promotion of financial inclusion among women and youth, and strengthening institutional capacity across Pakistan’s capital markets.
