ISLAMABAD: Minister for Finance Shaukat Tarin Monday directed to form a coordination committee for smooth implementation of the terms of references (ToRs) of Capital Market Advisory Council (CMAC). The finance minister directed this, while chairing the first meeting of the CMAC held at the Finance Division.
The SAPM on Finance and Revenue, Dr Waqar Masood, secretary Finance Division, Chairman SECP Aamir Khan, Chairman HBL Sultan Ali Allana, and other senior officials participated in the meeting.
Governor State Bank of Pakistan (SBP) Reza Baqir joined through a video link. The CMAC was established in April 2020 under the Capital Market Development Plan (CMDP). In the maiden meeting, the secretary finance briefed the members of the Council that the purpose behind the CMAC was to introduce reforms in the capital market in the country.
While speaking on the occasion, the finance minister stated that the establishment of the CMAC was long over-due as capital markets can improve risk sharing and the efficiency with which capital is allocated to the real economy; thereby, boosting economic growth and development.
The underlying rationale is to attract investors, especially ones with lesser resources, to contribute in capital markets, so that their limited resources are channelised into more productive use. The reforms will be introduced after having input from all the relevant stakeholders, he stressed.
The finance minister also directed to include members from the SECP, the SBP, the Pakistan Banking Council, commercial markets, legal counsel, and an expert on Islamic Banking in the Coordination Committee for a comprehensive stakeholders' feedback.
It was also decided that the SECP shall be the secretariat of the Coordination Committee and chairman SECP shall be the head/secretary of the Coordination Committee.
It was agreed that the Coordination Committee shall meet once in every month and send its recommendations for review to the apex committee of the CMAC that will issue directions to the SECP and other relevant stakeholders for final implementation.
Copyright Business Recorder, 2021