Pakistan to introduce online-only brokers to strengthen investor base in equity market

A Pakistani broker watches share prices on monitors during trading at The Karachi Stock Exchange (KSE) in Karachi on January 7, 2016. (AFP/File)
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Updated 23 February 2022
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Pakistan to introduce online-only brokers to strengthen investor base in equity market

  • The net worth of brokers offering internet-based trading will be reduced from Rs25 million to Rs7.5 million
  • Pakistan’s equity investor base is less than one percent of its population, making it one of the lowest in the region

ISLAMABAD: Pakistan is all set to introduce a new category of online-only brokers within a month to increase the number of investors in the equity market, encourage financial inclusion and reduce the risk of clearing and custody defaults.

The South Asian nation of 220 million has one of the lowest investor bases in the region’s financial markets with only 0.26 million individuals and entities benefiting from stock trading. Pakistan’s archrival India has 46 million equity investors, Bangladesh two million, Turkey 5.1 million and Indonesia 3.7 million. The country needs to add two million plus investors to reach one percent of its population.

To meet the challenge, the Securities and Exchange Commission of Pakistan (SECP) has come up with an innovative idea of online-only brokers to attract new investors to the stock market by offering incentives and guarantees to both the potential shareholders and brokers.

The SECP has rolled out a concept note for public feedback before formally launching the initiative.

“We are getting a very encouraging response to the initiative, and hopefully we will be able to launch it within a month with formulation of proper rules and regulations,” Sajid Gondal, a spokesperson for the SECP, told Arab News on Wednesday.

He said the initiative would help the authorities reach out to the tech-savvy youth across the country and provide them with an opportunity to invest in the equity market from the comfort of their homes.

“This will help us increase the investor base in the stock market by providing the public with easy access to brokers,” he said. “People can invest their hard-earned money in stocks without any fear of fraud as the market and brokers will be operating under a strict regulatory framework.”

Under the initiative, the online-only brokers will be required to maintain a minimum net worth of 7.5 million rupees while the SECP may reduce its licensing fee for the brokers to Rs50,000 instead of Rs100,000 and renewal fee to Rs25,000 instead of Rs50,000.

Presently only brokers with a net worth of 25 million rupees can offer internet-based trading under the Pakistan Stock Exchange regulations.

Other incentives include permission to online-only brokers to charge 50 percent less brokerage commission. They may also be allowed to operate as a single member company.

Reacting to the development, investment experts and economists termed it a “game changer” that could help attract a large number of new investors to the stocks and equity market.

“This will help create new job opportunities for the youth and boost our investor base that is among the lowest in the world,” Baqar Jafri, economist and chief executive officer of Investors Lounge, told Arab News.

He said the new broker category would help increase investor outreach and financial inclusion.

“This will be instrumental in enhancing investor convenience and help them perform activities like account opening, investments and divestments without having to physically visit a brokerage office,” Jafri added.


‘Look ahead or look up?’: Pakistan’s police face new challenge as militants take to drone warfare

Updated 59 min 25 sec ago
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‘Look ahead or look up?’: Pakistan’s police face new challenge as militants take to drone warfare

  • Officials say militants are using weapons and equipment left behind after allied forces withdrew from Afghanistan
  • Police in northwest Pakistan say electronic jammers have helped repel more than 300 drone attacks since mid-2025

BANNU, Pakistan: On a quiet morning last July, Constable Hazrat Ali had just finished his prayers at the Miryan police station in Pakistan’s volatile northwest when the shouting began.

His colleagues in Bannu district spotted a small speck in the sky. Before Ali could take cover, an explosion tore through the compound behind him. It was not a mortar or a suicide vest, but an improvised explosive dropped from a drone.

“Now should we look ahead or look up [to sky]?” said Ali, who was wounded again in a second drone strike during an operation against militants last month. He still carries shrapnel scars on his back, hand and foot, physical reminders of how the battlefield has shifted upward.

For police in the northwestern Khyber Pakhtunkhwa (KP) province, the fight against militancy has become a three-dimensional conflict. Pakistani officials say armed groups, including the Tehreek-e-Taliban Pakistan (TTP), are increasingly deploying commercial drones modified to drop explosives, alongside other weapons they say were acquired after the US military withdrawal from neighboring Afghanistan.

Security analysts say the trend mirrors a wider global pattern, where low-cost, commercially available drones are being repurposed by non-state actors from the Middle East to Eastern Europe, challenging traditional policing and counterinsurgency tactics.

The escalation comes as militant violence has surged across Pakistan. Islamabad-based Pakistan Institute for Conflict and Security Studies (PICSS) reported a 73 percent rise in combat-related deaths in 2025, with fatalities climbing to 3,387 from 1,950 a year earlier. Militants have increasingly shifted operations from northern tribal belts to southern KP districts such as Bannu, Lakki Marwat and Dera Ismail Khan.

“Bannu is an important town of southern KP, and we are feeling the heat,” said Sajjad Khan, the region’s police chief. “There has been an enormous increase in the number of incidents of terrorism… It is a mix of local militants and Afghan militants.”

In 2025 alone, Bannu police recorded 134 attacks on stations, checkpoints and personnel. At least 27 police officers were killed, while authorities say 53 militants died in the clashes. Many assaults involved coordinated, multi-pronged attacks using heavy weapons.

Drones have also added a new layer of danger. What began as reconnaissance tools have been weaponized with improvised devices that rely on gravity rather than guidance systems.

“Earlier, they used to drop [explosives] in bottles. After that, they started cutting pipes for this purpose,” said Jamshed Khan, head of the regional bomb disposal unit. “Now we have encountered a new type: a pistol hand grenade.”

When dropped from above, he explained, a metal pin ignites the charge on impact.

Deputy Superintendent of Police Raza Khan, who narrowly survived a drone strike during construction at a checkpoint, described devices packed with nails, bullets and metal fragments.

“They attach a shuttlecock-like piece on top. When they drop it from a height, its direction remains straight toward the ground,” he said.

TARGETING CIVILIANS

Officials say militants’ rapid adoption of drone technology has been fueled by access to equipment on informal markets, while police procurement remains slower.

“It is easy for militants to get such things,” Sajjad Khan said. “And for us, I mean, we have to go through certain process and procedures as per rules.”

That imbalance began to shift in mid-2025, when authorities deployed electronic anti-drone systems in the region. Before that, officers relied on snipers or improvised nets strung over police compounds.

“Initially, when we did not have that anti-drone system, their strikes were effective,” the police chief said, adding that more than 300 attempted drone attacks have since been repelled or electronically disrupted. “That was a decisive moment.”

Police say militants have also targeted civilians, killing nine people in drone attacks this year, often in communities accused of cooperating with authorities. Several police stations suffered structural damage.

Bannu’s location as a gateway between Pakistan and Afghanistan has made it a security flashpoint since colonial times. But officials say the aerial dimension of the conflict has placed unprecedented strain on local forces.

For constables like Hazrat Ali, new technology offers some protection, but resolve remains central.

“Nowadays, they have ammunition and all kinds of the most modern weapons. They also have large drones,” he said. “When we fight them, we fight with our courage and determination.”