ISLAMABAD:
A robust capital market is fundamental to sustainable economic expansion, veteran businessman Arif Habib stated during the SECP Talk Series, drawing on more than five decades of involvement with Pakistan’s financial markets.
The session, attended by Securities and Exchange Commission of Pakistan (SECP) Chairman Dr Kabir Ahmed Sidhu, commissioners, market institution representatives, academics, and business leaders, examined the evolution of Pakistan’s capital markets, long-term investment strategies, and reforms required to deepen investor participation.
Opening the discussion, Sidhu explained that the Talk Series aims to institutionalise knowledge-sharing by linking regulators with seasoned market practitioners to support evidence-based policymaking. He outlined the SECP’s ongoing reforms, including digital investor onboarding, implementation of the T+1 settlement cycle, and initiatives to grow the investor base to 2.5 million through broader financial inclusion and simplified market access. “Our objective is to build a capital market ecosystem that is transparent, accessible and aligned with global standards,” he said.
Habib traced Pakistan’s capital market journey from open-outcry trading floors to today’s technology-driven marketplace, emphasising that while markets have evolved, the principles of successful investing — discipline, patience, and long-term thinking — remain constant.
He noted that the Pakistan Stock Exchange has delivered an average annual return of approximately 22 per cent over the past 22 years and a 14 per cent dollar-denominated return over the last five years. Market volatility, he stressed, is temporary, while long-term investment in fundamentally strong companies generates sustainable wealth.
Habib underscored the role of capital markets in mobilising savings, financing businesses, strengthening corporate governance, and creating employment across brokerage, asset management, investment banking, research, fintech, and advisory services. He called for greater financial literacy, particularly among young Pakistanis, to broaden participation in formal capital markets.