PAKISTAN
State Bank of Pakistan (SBP) Governor Jameel Ahmad has urged for greater integration of regional capital markets to mobilize financing for large-scale and long-term development projects, particularly those related to climate change and infrastructure.
Speaking at the International Capital Market Conference and Exhibition 2025, organized by the Securities and Exchange Commission of Pakistan (SECP) under the theme “Regional Integration and Innovation in Capital Markets: A New Era of Cooperation,” Ahmad said that with Pakistan’s economy stabilizing and moving toward higher growth, the country is now in a position to undertake structural reforms to deepen its financial markets.
He emphasized that the banking sector alone cannot meet long-term investment needs in economies with low savings rates, adding that integrated capital markets in the Asian region present a “historic opportunity” to channel regional savings into productive development. Such integration, he said, would strengthen financial stability and amplify Asia’s collective voice in the global financial system.
Highlighting the lessons from recent global and domestic shocks, including the COVID-19 pandemic, Ahmad noted that many countries were unable to access international capital markets due to rising risk premiums and limited domestic financing capacity. He warned that commercial banks alone cannot meet large funding needs without squeezing private-sector credit.
Ahmad also cautioned that regional integration must be accompanied by safeguards against systemic risks. He proposed a regional financial services framework, improved coordination among central banks and regulators, and the development of local currency debt markets to reduce exchange rate vulnerabilities.
The governor reiterated Pakistan’s recent progress in achieving macroeconomic stability, citing prudent fiscal and monetary policies that have lowered inflation and rebuilt external buffers. – ERMD
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