Page 12 - CMA Journal (May-Jun 2026)

E x c lus iv e I nt er v iew

Take digital onboarding: the same NADRA-based It means SECP's enforcement machinery visibly ICMA: ESG reporting in Pakistan is still voluntary
biometric veri cation and IBAN-linked account protecting those new investors when market for most companies. Should it become mandatory,
requirements are being applied consistently across misconduct occurs. Failure, by contrast, would be a and if so, through what sequencing?
NBFCs, insurance, and capital market entry. Or take headline number achieved through unsophisticated Dr. Kabir Ahmed Sidhu: The SECP-IFC ESG Pakistan
disclosure: the UBO framework, the Certi cate of retail participation that is then devastated by a market Project, launched earlier this year, has created an
Statutory Compliance, and enhanced reporting under downturn or manipulative scheme. That is why our important foundation: private sector leaders, capital
investor protection reforms, mandatory disclosures,
the Insurance Bill 2026 all ow from the same principle, AML/CFT safeguards, and robust enforcement, must market institutions, professional bodies, and
that regulators and investors must be able to see grow in parallel with outreach. multilateral partners working together to build
clearly through a company's structure and activities. responsible investing norms. My view is that
mandating ESG reporting prematurely, without
Internal governance at SECP, including regular ICMA: Mutual fund investment has been simpli ed for adequate standards, board capacity, and veri cation
cross-divisional coordination, ensures that our small investors. Yet Pakistan's savings-to-GDP ratio infrastructure, risks producing compliance theatre
licensing, supervisory, and enforcement functions are remains persistently low. Can SECP's reforms rather than genuine disclosure. The sequencing I
aligned rather than siloed. A regulator with realistically shift savings behaviour at the national level? favour begins with expanding voluntary adoption
fragmented oversight creates arbitrage opportunities; Dr. Kabir Ahmed Sidhu: Regulatory reform is a among listed companies, developing
we are determined not to. necessary but not su cient condition for shifting Pakistan-appropriate ESG reporting standards aligned
savings behaviour. What we can do, and are doing, is with international frameworks, and building the
ICMA: SECP's LEAP programme has digitised remove every friction that stands between a Pakistani auditing and veri cation capacity within the
licensing, replaced statutory forms from 75 to 28, citizen and their rst formal investment. Simpli ed professional accountancy community, including ICMA
and launched same-day corporate bank account mutual fund onboarding, streamlined KYC and AML members, who will be central to this work. Mandatory
reporting for listed companies should follow once the
opening. Where does technology-driven regulation agricultural futures, linked to a real-time Electronic procedures, digital account opening, and accessible ecosystem is ready to deliver meaningful, comparable
still fall short in Pakistan? Warehouse Receipt system, would change that product information lower the cost and complexity of disclosures. The goal is substance, not paperwork.
entry. The Capital Market Development Fund,
Dr. Kabir Ahmed Sidhu: LEAP, our Leading E ciency fundamentally. The obstacles are real but supported by contributions from market participants, ICMA: If you look ve years ahead, what does a
through Automation Prowess programme, has been surmountable. First, warehouse infrastructure across will sustain investor education over the long term transformed SECP look like, and what is the single
transformative. eZ le has replaced the legacy Pakistan is fragmented and often below the standards rather than through one-o campaigns. But savings biggest risk to getting there?
eServices portal, automating key corporate required for accredited storage. Second, farmer and behaviour is also shaped by macroeconomic Dr. Kabir Ahmed Sidhu: Five years from now, I want
registration, post-incorporation compliance, mortgage trader familiarity with futures instruments is very con dence, real returns, and the perceived safety of SECP to be known as one of Pakistan's best-performing
registrations, and foreign company lings. The limited, nancial literacy and market education must formal institutions. When people trust that their public institutions, trusted for its transparency,
e ciency, and ability to deliver results.
investments are protected and regulated fairly, they
reduction in statutory forms from 75 to 28 eliminated accompany infrastructure. Third, coordination save through formal channels. That is why Our priorities are clear.
procedural duplication that had accumulated over between federal and provincial governments, PMEX, enforcement credibility is as important as process 1. Increase the investor base from around 500,000 to
decades. But I am direct about where gaps remain. and nancial institutions requires sustained political simpli cation, the two must move together. more than 2.5 million informed investors.
First, digital penetration is uneven: many small and will. SECP has already approved PMEX's acquisition of a 2. Fully automate company registration, licensing,
medium enterprises, particularly outside major cities, majority stake in Naymat Collateral Management ICMA: SECP is proposing a UK-style mandatory and compliance through an AI-powered regulatory
still struggle to navigate even simpli ed online Company to anchor the EWR ecosystem, and Punjab's pre-litigation mediation framework to decouple platform.
processes. Second, the quality and completeness of successful pilot for wheat storage shows the model commercial dispute resolution from the courts. 3. Establish Business Facilitation Centres across
digital lings varies signi cantly. A system is only as works. The roadmap we have directed PMEX to prepare Why is this relevant to nancial governance Pakistan to make starting and growing a business
good as the data entered into it. Third, enforcement will set concrete timelines for each of these. speci cally? much easier.
ICMA: At the Competition Commission of Pakistan, and regulatory oversight. The Certi cate of Statutory has not yet fully leveraged real-time digital ICMA: Investor participation in Pakistan’s capital Dr. Kabir Ahmed Sidhu: Pakistan's courts carry an 4. Transform PMEX into a modern mercantile
exchange that delivers transparent price discovery
the case backlogs were reduced by over 70% and Compliance, T+1 settlement, the Insurance Bill 2026, intelligence. We are addressing all three: through markets remains below 1% of the population, while enormous backlog of commercial cases, including a and expands access to nance for farmers.
recovered Rs. 1.60 billion in penalties within two and reducing the licensing backlog by over 510 cases public awareness, through the AI-powered data SECP has set a target of 2.5 million investors. How substantial number involving SECP-regulated entities. 5. Modernize the insurance sector through the
When disputes take years to resolve, investor
years. What institutional lesson from that in just three months are examples of that approach. validation systems we are building, and through Phase much success rate do you expect in achieving this con dence erodes, capital allocation is distorted, and Insurance Bill 2026 with faster claims settlement
experience are you applying at SECP? The philosophy is simple: good regulation should be 2 of LEAP which now covers insurance and NBFC target? the deterrent e ect of regulatory enforcement and greater consumer protection.
Dr. Kabir Ahmed Sidhu: The biggest lesson learnt is easy to comply with, di cult to evade, and quick to licensing. Dr. Kabir Ahmed Sidhu: Success is not just a number , weakens. The UK's mandatory pre-litigation mediation 6. Establish specialised Securities and Insurance
Tribunals for faster dispute resolution.
that institutions earn credibility through execution, enforce. ICMA: It is to directed PMEX to build physically it is what lies behind the number. Two and a half model has demonstrated that a signi cant proportion
not announcements. ICMA: SECP regulates companies, capital markets, deliverable agricultural futures contracts backed million active, informed investors who understand of commercial disputes can be resolved faster, at lower 7. Continue improving SECP's own e ciency by
At CCP, we inherited more than 560 pending cases and insurance, and non-banking nance by an Electronic Warehouse Receipt system. This is a what they own, why they own it, and what their rights cost, and with greater satisfaction to both parties, reducing human intervention, strengthening
more
making
regulation
governance,
and
without ever reaching a courtroom. The ADR Centre we
a weak enforcement record. By setting clear targets, simultaneously. How do you prevent regulatory transformative idea for Pakistan's farming sector, are: that is the goal. It means young Pakistanis using are exploring with the U.S. Department of Commerce's transparent and predictable.
empowering our people, using technology fragmentation from undermining coherent what are the biggest obstacles to making it real? the upcoming dedicated stock market app to make CLDP would provide a structured, credible, and The biggest risk is not the lack of ideas. It is the lack of
intelligently, and measuring performance, we cleared governance? their rst investment from a mobile phone in Multan or professionally managed alternative pathway. For consistency. Institutions succeed when reforms
the backlog and signi cantly improved recoveries. Dr. Kabir Ahmed Sidhu: This is one of the most Dr. Kabir Ahmed Sidhu: This initiative sits at the Mirpur, not just in Karachi or Lahore. It means women nancial governance, the implications are direct: faster continue beyond individuals. If we sustain this
intersection of market modernisation, agricultural
The similar philosophy is being applied to SECP. We are important structural questions for any multi-mandate development, and nancial inclusion, and it is one I am and SME owners entering formal capital markets for resolution of company disputes, securities claims, momentum with capable people, e cient processes,
focusing on people, processes, and technology. We set regulator. Our answer is coordinated reform design, personally committed to advancing. When farmers the rst time, supported by the Capital Market insurance disagreements, and contract matters means and modern technology, SECP can become a model
regulator for the region.
measurable targets, remove unnecessary bottlenecks, ensuring that initiatives across divisions reinforce one cannot access transparent price discovery, they are at Development Fund's Rs. 120 million initial contribution greater predictability for investors and businesses.
and use technology to improve both service delivery another rather than pull in di erent directions. to investor education. Rule of law is not only about what courts eventually The Editorial Board thanks Dr. Kabir Ahmed Sidhu, Chairman,
the mercy of intermediaries. Physically deliverable Securities and Exchange Commission of Pakistan (SECP), for
decide, it is about how quickly and fairly disputes are sparing his precious time to give an exclusive interview for Chartered
resolved. Management Accountant Journal.
10 ICMA’s Chartered Management Accountant, May-Jun 2026