Pakistan’s capital markets and corporate sector posted strong growth during FY2025-26, supported by regulatory reforms introduced by the Securities and Exchange Commission of Pakistan (SECP), according to the Economic Survey 2025-26.
The Pakistan Stock Exchange (PSX) emerged among the world’s best-performing equity markets during the first nine months of the fiscal year, reflecting improving investor confidence and a strengthening economic outlook.
The benchmark KSE-100 Index gained 18.4 percent during July to March FY2025-26, rising from 125,627 points to 148,743 points. Market capitalization climbed to Rs. 16.5 trillion, while average daily trading volumes increased to 1.2 billion shares from 834 million shares in the same period last year.
The Survey attributed the performance to easing inflation, successful reviews under the IMF program, stronger external sector indicators, and continued support from bilateral and multilateral partners.
According to the Survey, a series of SECP reforms helped deepen the capital market and improve transparency. These measures included the transition to a T+1 settlement cycle, reforms in public offerings, investor facilitation initiatives, digital onboarding systems, enhanced corporate disclosures, and market development efforts aimed at strengthening investor confidence.
The corporate sector also expanded significantly during the period, with 31,986 new companies incorporated between July and March. This brought the total number of registered companies in Pakistan to 294,101.
The newly registered firms had a combined paid-up capital of Rs. 67 billion, with the information technology, trading, and services sectors accounting for a large share of new business registrations.
The SECP continued efforts to improve the ease of doing business through measures such as the full digitization of share ownership for unlisted companies, fast-track bank account opening facilities, inter-agency integration, and reforms to the corporate restructuring framework. These initiatives were designed to simplify business operations and encourage formal sector growth.
Activity in the debt and non-banking financial sectors also remained strong. Six debt securities worth Rs. 12.45 billion were issued during the period, while the government raised Rs. 5.1 trillion through the PSX-based debt auction platform since its launch in December 2023.
Mutual fund assets under management reached Rs. 4.54 trillion, while the overall mutual fund industry expanded to Rs. 5.64 trillion. Voluntary pension fund assets rose to Rs. 138 billion, and the number of REIT schemes increased to 29 with a combined fund size of Rs. 173 billion.
Islamic finance maintained strong momentum, with the SECP issuing Shariah compliance certificates for 53 corporate Sukuk issuances worth Rs. 229.6 billion during July to March FY2025-26. Sovereign Sukuk issuances reached Rs. 1.86 trillion, while Shariah-compliant securities accounted for 64 percent of the PSX’s total market capitalization.
The Economic Survey noted that sustained macroeconomic stability, continued reforms, and stronger investor protection measures will be critical for further expanding Pakistan’s capital markets and broadening investor participation.
