SECP Moves to Deepen Local Bond Market as REIT Lists on PSX
SECP Moves to Deepen Local Bond Market as REIT Lists on PSX
Pakistan’s capital market regulator is pushing to deepen the Pakistan bond market, its chairman said on Thursday, as the Naya Nazimabad Apartments REIT made its debut on the Pakistan Stock Exchange.
Securities and Exchange Commission of Pakistan (SECP) Chairman Dr Kabir Ahmed Sidhu said the listing of the Naya Nazimabad Apartments REIT on the PSX was an important milestone for the Pakistan bond market, which remains underdeveloped relative to the size of the economy.
REIT listing a milestone for the property sector
Speaking at the gong-striking ceremony for the REIT’s listing in Karachi, the SECP chairman noted that the size of Pakistan’s real estate sector exceeded Rs7 trillion.
He said real estate investment trusts could play an important role in documenting the property sector and giving ordinary citizens a chance to invest in it, opening an asset class that has long stayed outside the reach of small investors.
The SECP has been introducing reforms to make the REIT sector easier to invest in, and the Naya Nazimabad Apartments listing is being presented as the first visible result of that effort.
A reform agenda for the Pakistan bond market
The commission has achieved significant milestones over the past eight months, the chairman said, and has proposed amendments to laws aimed at facilitating businesses and developing the market.
Proposed amendments to insurance and company laws are currently under consideration by parliament, while important amendments have also been proposed to the regulations governing the non-banking financial sector.
Digitalisation of the regulatory system, simplification of legal compliance and improved market access are among the SECP’s top priorities, Sidhu said. The commission is enforcing compliance to promote transparency and protect investors.
Several long-standing issues faced by foreign investors, particularly Chinese investors, have been resolved, he added, and the process for registering a company has been simplified further. The SECP is also working on an initiative to increase the number of capital-market investors.
Capital markets in 2026
The regulator’s push comes in a year of steady expansion for Pakistan’s capital markets. So far in 2026, Rs26 billion has been raised through 13 initial public offerings, with companies from the manufacturing, agriculture, real estate, energy and technology sectors raising capital through the stock market.
Improved market access has produced a 36% increase in the number of investors. Since January, 168,000 new investors have joined the stock market, taking the total investor base to 630,000.
FAQs
What is a REIT?
A real estate investment trust pools money from investors to buy income-generating property, letting ordinary citizens invest in real estate without purchasing property outright. The Naya Nazimabad Apartments REIT listed on the PSX on Thursday.
Why does Pakistan need a deeper bond market?
A domestic-currency bond market lets the government and companies raise long-term funds in rupees rather than relying on bank loans or foreign borrowing. Deepening it widens the investor base and lowers financing costs.
How have Pakistan’s capital markets grown in 2026?
Rs26 billion has been raised through 13 IPOs this year, and the investor base has grown 36% to 630,000, with 168,000 new investors joining since January.
