SECP orders security initiatives
The Securities and Exchange Commission of Pakistan (SECP) has convened an emergency meeting to assess the situation in the wake of geopolitical tension in the region.
In order to preserve market stability and investor confidence at this time, the SECP reaffirms its commitment to ensure continuity in capital market operations, said a press release issued here on Wednesday.
The Capital Market Infrastructure Institutions (CMIIs), including the Pakistan Stock Exchange, National Clearing Company of Pakistan and Central Depository Company, also participated in the meeting.
They assured that robust and efficient risk management measures are in place to ensure the smooth functioning of Pakistan’s capital markets.
In response to the current situation, the SECP has advised all CMIIs to immediately enhance their security protocols and operational continuity measures.
This includes strengthening cybersecurity defences across all trading, risk management, clearing, and settlement systems and activating full business continuity plans.
Pakistan meets major IMF conditions
The International Monetary Fund’s $7 billion bailout package largely remained on track during the first nine months of this fiscal year, as the federal and provincial governments met three out of five major fiscal conditions, with the Federal Board of Revenue (FBR) remaining the only weak link.
The FBR missed its two key conditions of collecting Rs9.17 trillion total revenues and Rs36.7 billion from retailers under the Tajir Dost scheme during July-March period of this fiscal year, showed the fiscal operations summary released by the Ministry of Finance on Wednesday.
The IMF has set multiple fiscal conditions, whose successful completion has so far helped smooth continuation of the programme despite initial setbacks. In spite of achieving critical revenue targets, the federal government’s net revenues were still Rs394 billion less than its needs for just two heads; interest payments and defence spending, according to the Finance Ministry.
The fiscal operations’ summary showed that Pakistan met the IMF targets for a primary budget surplus by the federal government, as well as net revenue collection and cash surplus targets by the four provinces.
Pakistan: sector-wide reforms initiated
The government is going to introduce a set of reforms in different sectors of the country to ensure ease of doing business.
The Cabinet Committee on Regulatory Reforms (CCoRR) in its recent meeting agreed to a set of reforms to be introduced in the coming days.
The first meeting of the Cabinet Committee on Regulatory Reforms (CCoRR) was held at the Board of Investment on May 6, 2025, in line with Prime Minister Shehbaz Sharif’s vision to streamline Pakistan’s regulatory landscape and improve the ease of doing business.
The reforms are going to be introduced in multiple sectors including the Drug Regulatory Authority of Pakistan (DRAP), National Highway Authority (NHA), Pakistan Halal Authority (PHA), and the Federal Seed Certification and Registration Department (FSC&RD).
One key proposal calls for DRAP to sign a Memorandum of Understanding (MoU) with the Intellectual Property Organisation of Pakistan (Pak-IPO) to ensure real-time data sharing related to trademark registration.
Currently, a lack of coordination between the two entities has resulted in overlapping brand name claims. The proposed alignment would be in line with international best practices.
Worldwide bonds rally despite Indo-Pak escalation
Despite escalating Indo-Pak tensions following airstrikes, Pakistan’s Euro and Sukuk bonds have posted notable gains in global markets, highlighting investor confidence in the country’s macroeconomic management and IMF-backed reform agenda.
Yields on Pakistan’s international bonds have declined by 18-61 basis points across various tenors over the last 8-9 days, reflecting a corresponding rise in bond prices.
“Surprisingly, yields on Pakistan Euro/Sukuk bonds in the international market have improved (prices increased) by 18-61 basis points after falling on average 160 basis points across various tenors in the last 8-9 days,” wrote Topline Securities in a research report.
Pakistan International Bond (Eurobond) and Sukuk bond prices are improving due to growing investor confidence in the country’s economic outlook, said Ali Najib, Head of Sales at Insight Securities.
Green sukuk introduced to boost green economy
The government has launched the first Green Sukuk aiming at to attract a broader investor base, deepen financial markets, and accelerate the country’s transition to a green and resilient economy.
The other objective of the initiative was to channel investments into environmentally sustainable projects while fostering economic growth, besides integrating sustainable finance into the core of the development strategy, said a press release issued by the Ministry of Finance on Wednesday.
This pioneering financial instrument is set to revolutionise Pakistan’s sukuk market by channeling investments into environmentally sustainable projects while fostering economic growth, it added.
The Green Sukuk marks a pivotal step in aligning the financial markets of the country with global best practices in green financing. The inaugural issuance, ranging between Rs20 billion and Rs30 billion, will be conducted through an auction process, with the Pakistan Stock Exchange (PSX) playing a central role in listing and promoting this innovative instrument to investors.
The Green Sukuk Program has been structured with the support of the Joint Financial Advisors: Meezan Bank Limited, Bank Alfalah Limited, Dubai Islamic Bank Pakistan Limited, and Bank Islami Pakistan Limited.
The Sustainable Investment Sukuk Framework, approved by the Cabinet, lays the foundation for the landmark debut of the Green Sukuk. This initiative is closely aligned with Pakistan’s Vision 2028, particularly its goal of transitioning to an interest-free economy.