Finance Minister Shaukat Tarin has said that the underlying rationale to establish Capital Market Advisory Council (CMAC) is to attract investors, especially the ones with lesser resources, to contribute in capital markets so that their limited resources are channelised into more productive use.
The finance minister said this while chairing the maiden meeting of the Capital Market Advisory Council (CMAC) on Monday.
Tarin said that establishment of the CMAC was long overdue 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. He said that reforms will be introduced after having input from all the relevant stakeholders.
The finance minister directed to form a coordination committee for smooth implementation of the terms of reference (TORs) of CMAC. He further directed to include members from the Securities and Exchange Commission of Pakistan (SECP), State Bank of Pakistan (SBP), Pakistan Banking Council and commercial markets, a legal counsel and an expert on Islamic banking in the coordination committee for a comprehensive stakeholders’ feedback.
The secretary finance briefed the members of the council that the purpose behind the establishment of CMAC is to introduce reforms in the capital markets in the country.
The meeting 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 a month and send its recommendations for review to the apex committee of the CMAC that will issue directions to SECP and other relevant stakeholders for final implementation.
The meeting was attended by SAPM on Finance and Revenue Dr Waqar Masood, secretary finance, Chairman SECP Aamir Khan, Chairman HBL Sultan Ali Allana, Governor State Bank of Pakistan Dr Reza Baqir, and other senior officials.
The Capital Market Advisory Council was established in April 2020 under the Capital Market Development Plan (CMDP).