Shehbaz presses exporters as Aurangzeb sets out capital market reform

Prime Minister Shehbaz Sharif said on Thursday that the government remains committed to export-led, sustainable economic growth following the stabilisation of the economy. In a virtual address to the Pakistan Stock Exchange in Karachi, he criticised some export-oriented industries for receiving incentives and government support over past decades without delivering the desired results.

"I do not want to name the export industries that have failed to deliver," the prime minister said, urging them to correct course and play their role in driving export-led and sustainable economic growth. He said successive governments had provided exporters with substantial support and incentives, "but prices of relevant products have gone up, while the quality has deteriorated".

Speaking in person at the PSX trading hall, Finance Minister Muhammad Aurangzeb presented a review of the reform agenda agreed under the IMF Extended Fund Facility. "The government has to show more fiscal discipline, and at the same time, we want to shift our borrowing away from banks to non-banks and retail investors," he said.

On the Capital Market Development Council, Aurangzeb said the government "is trying to figure out all asset classes, including VCS, Sukuks and REITs", adding that it was conducting an overall review of taxation and regulatory reforms to scale up the capital markets. He said the government does not need to implement all reforms at once and could phase in measures with appropriate safeguards.

The finance minister said the council includes the Governor of the State Bank of Pakistan, the chairman of the Securities and Exchange Commission of Pakistan and other stakeholders. He said recommendations would be delivered to the Prime Minister's Office, the central bank, the SECP and the Ministry of Finance "by or before the end of the year". The SECP, he added, is already working on a legislative agenda that would later go to Parliament.