Pakistan capital markets excel in FY2025-26 as investor Confidence strengthens

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 11th Jun, 2026) Pakistan’s capital markets demonstrated remarkable resilience and growth during the first nine months of FY2025-26, driven by improving macroeconomic fundamentals, easing inflation, and rising investor confidence, according to the Economic Survey 2025-26 unveiled by Minister for Finance and Revenue Senator Muhammad Aurangzeb on Thursday.

The survey highlighted that the country’s capital markets, particularly the stock market, delivered an encouraging performance during July-March FY2025-26.

The benchmark KSE-100 Index of the pakistan stock exchange (psx) outperformed many major global stock market indices, reflecting renewed investor optimism and strengthening economic conditions.

According to the survey, the positive market sentiment was supported by successful reviews under the International Monetary Fund’s Extended Fund Facility (EFF) programme, improved expectations regarding corporate profitability, and continued financial inflows from bilateral and multilateral development partners.

The debt market also witnessed significant activity, with robust issuance and trading of government debt securities and Sukuk through capital market platforms.

Meanwhile, National Savings Schemes (NSS) recorded a net inflow of Rs226.7 billion during July-March FY2025-26, indicating growing investor preference for secure savings instruments.

The Economic Survey noted that Pakistan’s non-bank financial services sector expanded further during the period. Mutual funds maintained steady growth, while Real Estate Investment Trusts (REITs), pension funds, and investment advisory services also recorded positive developments.

Islamic finance continued its upward trajectory, emerging as a major growth driver within the financial sector. Corporate Sukuk issuances increased, sovereign Sukuk trading remained active, and the share of Shariah-compliant securities in listed market capitalization rose substantially.

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The survey attributed much of the capital market’s progress to a series of reforms introduced by the Securities and Exchange Commission of Pakistan (SECP). These reforms included improvements in settlement systems, facilitation of initial public offerings (IPOs), investor-friendly initiatives, private placement marketing mechanisms, and the introduction of digital platforms for investors and corporate disclosures.

“These reforms have contributed to deepening the market, enhancing transparency, and strengthening investor confidence,” the survey stated.

The report emphasized that the equity market serves as a vital platform for trading ownership in listed companies and remains a key indicator of business confidence, corporate earnings prospects, market liquidity, and investor risk appetite. A well-regulated stock market also promotes corporate discipline through strict disclosure, governance, and reporting standards.

The chapter on Capital Markets and Corporate Sector in the Economic Survey reviews the performance of Pakistan’s equity, debt, and commodity futures markets, alongside developments in non-banking financial companies, the corporate sector, Islamic finance, and the insurance industry.

It also outlines ongoing reforms and development initiatives undertaken by the SECP to strengthen market efficiency, transparency, and long-term sustainability.

With investor confidence improving and economic indicators stabilizing, Pakistan’s capital markets are increasingly emerging as a critical source of financing for both the corporate sector and the government, reinforcing their role in supporting economic growth and financial stability.