Pakistan’s finance minister unveils centralized gateway portal to boost country’s debt market

A stock broker reacts while monitoring the market on the electronic board displaying share prices during trading session at the Pakistan Stock Exchange, in Karachi, Pakistan July 3, 2023. (REUTERS/File)
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Updated 22 September 2023
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Pakistan’s finance minister unveils centralized gateway portal to boost country’s debt market

  • The platform will streamline investor onboarding process and enhance convenience of market intermediaries
  • The portal will be a major part of Pakistan’s financial infrastructure and will list government debt securities

ISLAMABAD: Pakistan’s interim finance minister Dr. Shamshad Akhtar inaugurated a centralized gateway portal (CGP) on Friday, saying it would help develop debt market in the country by listing government securities to promote retail participation, transparency, savings channelization, and overall market growth.

Debt or bond markets constitute financial arenas in which people buy and sell various types of debt securities representing loans made by investors to entities such as governments, corporations, or other organizations.

These securities are typically issued with the promise of periodic interest payments to bondholders and the repayment of the principal amount at maturity.

According to a statement released by the Securities and Exchange Commission of Pakistan (SECP), the CGP is a novel financial initiative to facilitate simultaneous onboarding of investors and customers across the securities market, the nonbank financial companies’ sector, and the insurance industry.

The platform features standardized, one-time know-your-customer requirements across diverse asset classes.

“Dr. Shamshad Akhtar, the Federal Minister for Finance & Revenue, said that the securities market can play a vital role in the development of debt market through the listing of government debt securities on PSX [Pakistan Stock Exchange],” said the SECP statement.

Addressing the inauguration ceremony, Akhtar said the issuance of securities through public auctions at PSX would facilitate greater transparency.

“One of the key issues undermining the growth of capital markets is the lack of liquidity which is directly attributable to the small number of investors,” she was quoted as saying.

The minister said the CGP would provide immense opportunities to investors and great convenience to market intermediaries by removing duplications and streamlining the customer onboarding process.

However, she noted the successful CGP launch should not be deemed the end of the project.

“Having developed this promising digital platform, we are now faced with the critical part of realizing the potential it offers,” she continued. “This requires focused marketing efforts and promotion on the part of the PSX and other stakeholders like brokers, insurance companies, and AMCs [asset management companies].”

The minister pointed out that attracting new investors in the capital market should be one of the primary objectives, adding it would require coordinated efforts from all capital market infrastructure institutions, market intermediaries and brokerage houses under the SECP guidance.


Pakistan, China call for more ‘visible, verifiable’ actions to dismantle ‘terrorist’ groups in Afghanistan 

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Pakistan, China call for more ‘visible, verifiable’ actions to dismantle ‘terrorist’ groups in Afghanistan 

  • Foreign ministers of China, Pakistan co-chair seventh round of strategic dialogue in Beijing to review bilateral cooperation, regional situation
  • Pakistan accuses Kabul of facilitating attacks launched by militant outfits from Afghanistan’s soil, a charge Kabul has repeatedly denied

ISLAMABAD: Pakistan and China on Monday urged Afghanistan to take more visible actions to dismantle “terrorist organizations” based in its country, vowing to work with world powers to encourage Kabul to adopt moderate policies and integrate into the international community. 

Ties between Pakistan and Afghanistan remain strained as Islamabad alleges militant outfits, mainly the Tehreek-e-Taliban Pakistan (TTP) group, uses Afghan soil to launch attacks against Pakistan. Islamabad accuses the Afghan Taliban government of facilitating these attacks against Pakistan, charges Kabul have repeatedly denied. 

The joint statement by China and Pakistan was released after a meeting of both countries’ foreign ministers, Ishaq Dar and Wang Yi, in Beijing. Dar and his Chinese counterpart co-chaired the Seventh Round of China-Pakistan Foreign Ministers’ Strategic Dialogue in Beijing on Jan. 4 where they reviewed cooperation in trade, investment, economic sectors, counterterrorism, defense and regional matters. 

“The two sides called for more visible and verifiable actions to dismantle and eliminate all terrorist organizations based in Afghanistan which continue to pose serious threats to regional and global security, and prevent terrorist organizations from using the Afghan territory for terrorism against any other country and to endanger any other country,” the statement read. 

The joint statement said the two countries will work with world powers to encourage Kabul to adopt an inclusive political framework, moderate policies, and pursue good neighborliness. 

On bilateral cooperation, China and Pakistan said they had agreed to focus on industry, agriculture and mining, and also promote the building and operation of the Gwadar Port in southwestern Pakistan. 

“The two sides will deepen cooperation in areas such as trade and investment, information technology, science and technology, cybersecurity, technical and vocational training and education, and people-to-people and cultural exchanges,” the statement said. 

“The two sides agreed to further strengthen cooperation in the financial and banking sectors, including extending mutual support at regional and international multilateral financial forums. Pakistan appreciated China for providing support for its fiscal and financial sectors.”

The joint statement said China commended Pakistan’s “comprehensive measures” to combat “terrorism” and protect Chinese personnel, projects and institutions in the country.

“The two sides reiterated their commitment to combating terrorism in all its forms and manifestations with zero tolerance, and agreed to further deepen all-round cooperation on counter-terrorism and security, and make concerted efforts to ensure that the China-Pakistan Belt and Road cooperation advance in a secure and smooth manner,” the statement said. 

Pakistan and China expressed their willingness to conduct a transboundary water resources cooperation, stressing the importance of fulfilling international legal obligations. The statement comes as Pakistan frequently accuses India of violating a water-sharing agreement between the two neighbors, claiming New Delhi purposefully diverts the flow of water away from its territory. 

Islamabad has warned that any move by New Delhi to stop or divert the flow of Indus rivers to Pakistan will be considered an “act of war.”

Pakistan and China also demanded an unconditional, comprehensive and permanent ceasefire in Gaza in their joint statement, reaffirming their support for the Palestinian people’s right to self-determination and for the implementation of a two-state solution in the Middle East. 

“The two sides also expressed their concern at the situation in the occupied West Bank, and urged the need for urgently addressing it,” the statement said.