Karachi (HRNW)-\u00a0Federal Finance Minister Senator Muhammad Aurangzeb has said investor participation in Pakistan\u2019s capital market has more than doubled over the past two and a half years, while stressing that sustainable macroeconomic stability is essential for continued economic growth.<\/p>\n
Addressing a ceremony at the Pakistan Stock Exchange (PSX) through video link, Aurangzeb said Pakistan needed to move away from the traditional \u201cboom-and-bust\u201d cycle and focus on sustainable growth supported by structural reforms and private-sector investment. The government has separately emphasized measures to deepen capital markets and broaden participation by retail and institutional investors.<\/p>\n
The minister said Rs60 billion had been released under the government\u2019s Wazir-e-Azam Apna Ghar<\/em> programme, while the banking sector had approved approximately Rs340 billion in housing finance. He said the banking industry had expanded its role and that the supply side, including builders and developers, now needed to respond more effectively.<\/p>\n Aurangzeb said organizations including Arif Habib and the Association of Builders and Developers (ABAD) had a role to play, while Real Estate Investment Trusts (REITs) could help connect financing with housing and construction activity.<\/p>\n Reflecting on the stock market\u2019s performance, he recalled that the KSE-100 Index was around 67,000 points in March 2024, compared with levels around 170,000 points in September 2026. The index has crossed the 170,000 level on several occasions this year.<\/p>\n Aurangzeb also highlighted activity in the primary market, saying 11 companies were listed on the PSX during the last financial year. The PSX\u2019s annual report confirms that FY2026 saw 11 Main Board listings, the first double-digit annual total in two decades.<\/p>\n He noted that younger investors were playing an increasingly significant role in the stock market. According to the PSX annual report, Gen Z and Millennials accounted for about 85 percent of new accounts during the year, while total unique investor identification numbers increased substantially.<\/p>\n The Finance Minister said Pakistan had also attracted interest from Turkish investors in the planned privatization of distribution companies (DISCOs). He reiterated that the government\u2019s role was to create a business-friendly environment, while the private sector would need to lead investment and economic expansion.<\/p>\n Aurangzeb further stressed that government policy should focus on maintaining sustainable macroeconomic stability rather than relying on temporary liquidity injections to stimulate activity. He said avoiding repeated economic downturns was important because recovery from a contraction could be difficult.<\/p>\n Discussing the country\u2019s financial markets, the minister said efforts were underway to expand the bond market to retail investors. The Capital Market Development Council has been working on reforms aimed at broadening participation, strengthening the corporate debt market, and improving access to long-term financing.<\/p>\n He also referred to the emerging \u201cNew Economy 2.0,\u201d saying Pakistan had opportunities in global services and technology sectors beyond cryptocurrency. The government has increasingly highlighted IT exports, digital finance, and capital-market reforms as part of efforts to diversify the economy.<\/p>\n The minister\u2019s remarks come as Pakistan continues efforts to attract private and foreign investment, deepen capital markets, expand housing finance, and maintain macroeconomic stability.<\/p>\n