The Asian Development Bank (ADB) has approved a US$300 million loan to further develop Pakistan’s capital markets, promote private investment in the country, and help to mobilize domestic resources to finance sustainable growth. 

The second subprogram of ADB’s Third Capital Market Development Program builds on institutional and regulatory reforms put in place under the first subprogram approved in 2020. It aims to catalyze institutional investor demand and increase the range of alternative financial instruments that are available to investors.

ADB’s program supports policy actions that will strengthen market stability and attract investor capital to Pakistan. These include structural reforms within the Securities and Exchange Commission of Pakistan that will improve governance and regulatory capacity. It supports measures that will strengthen the government debt market and enhance market surveillance systems that facilitate information exchange. The program also promotes an enabling environment to expedite access to financing for growth companies and state-owned enterprises.