Corporate debt issuance reaches Rs291bn in Jan-Sept 2026: Finance Division

Pakistan’s corporate debt issuances reached Rs291 billion during January-September 2026, as the government pushes reforms to deepen the debt market, improve liquidity and expand access to long-term financing.

The Finance Division said on Friday that Finance Minister Muhammad Aurangzeb chaired the fourth meeting of the Capital Market Development Council (CMDC), which reviewed progress on capital market reforms and measures to broaden the issuer and investor base.

Corporate debt issuances amounted to Rs326 billion in 2025, up 30% from 2024, while 12 new listed corporate debt issuances worth Rs45.4 billion were recorded between February 2025 and September 2026, reflecting increased activity in Sukuk and other debt instruments.

The council also reviewed the proposed Shariah-compliant Sukuk programme of the National Grid Company of Pakistan Limited (NGC), with a total size of up to Rs100 billion. The inaugural issuance is planned at up to Rs20 billion, with a tenor of up to 10 years, subject to the requisite approvals and market conditions.

The programme is intended to be issued in tranches through public offerings listed on the Pakistan Stock Exchange (PSX). Aurangzeb welcomed the initiative, saying it could demonstrate the potential of listed corporate debt instruments and encourage similar issuances by other entities.

The council reviewed measures to facilitate corporate debt issuance, including the establishment of dedicated Corporate Debt Market Desks at the Securities and Exchange Commission of Pakistan (SECP) and PSX. A one-window listing mechanism is already operational through the two institutions, while work is underway to integrate the Central Depository Company (CDC) to further simplify the process.

The meeting also examined reforms covering tax and fiscal matters, debt issuance, market infrastructure, and investor protection and enforcement. The measures aim to address tax-related distortions, streamline listing procedures, reduce transaction costs, improve liquidity and strengthen investor safeguards.

On secondary-market development, the Finance Division said average daily traded value increased from Rs3.93 billion in fiscal year 2026 to more than Rs10 billion in fiscal year 2027 to date, as of October 15, 2026.

Thirteen banks have been onboarded and are actively participating in secondary-market trading arrangements, supported by engagement among PSX, the Pakistan Banks’ Association (PBA), CDC and the National Clearing Company of Pakistan Limited (NCCPL).

The council also discussed measures to facilitate banks’ participation in government Sukuk trading through PSX, including arrangements allowing banks and other eligible institutions to trade government securities without maintaining broker accounts.

To expand the institutional investor base, SECP briefed the council on consultations with 17 pension fund managers and 44 insurance companies. The discussions identified opportunities to improve the availability of suitable debt instruments, secondary-market liquidity, issuer disclosures and the broader investment framework.

Aurangzeb called for greater efforts to facilitate small and medium-sized enterprises (SMEs) and other businesses in accessing capital market financing. He directed SECP to work closely with PSX and relevant platforms to develop practical solutions and encouraged stronger engagement between investment banks, financial advisers, consultants and prospective issuers.

The finance minister also encouraged SECP and PSX to renew engagement with MSCI to explore Pakistan’s potential future reclassification to Emerging Markets status. He referred to his interaction with the MSCI team on the sidelines of the IMF-World Bank Annual Meetings in Bangkok earlier this month.

Aurangzeb said the next phase of capital market development should focus on translating regulatory and institutional reforms into higher issuance, deeper liquidity and broader investor participation.

He stressed the need to expand financing options beyond conventional bank lending, mobilise domestic savings for productive investment and enable more businesses to access long-term capital.

The meeting was attended by the SECP chairman and representatives of the State Bank of Pakistan, PSX, PBA and the Tax Policy Office, along with senior Finance Division officials.