Islamabad, 18 Apr 2025: Pakistan and Malaysia Collaborate once again in a strategic push to Strengthen Islamic Capital Markets, as a high-level delegation of Malaysian Shariah finance experts and scholars visited the Pakistan Stock Exchange (PSX).
The event aimed to boost bilateral cooperation in the realm of Islamic financial services, fostering a deeper alliance between the two nations.
This important engagement kicked off with a ceremonial gong strike at PSX to welcome the Malaysian guests, symbolizing the launch of new opportunities in Shariah-based finance.
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The visit featured productive conversations on enhancing cross-border ties and accelerating the expansion of Islamic capital frameworks across both countries.
Expanding Shariah-Compliant Investment Ecosystems
PSX Chairperson Dr. Shamshad Akhtar addressed the participants by expressing strong confidence in the growing demand for ethical, Shariah-oriented investment solutions in Pakistan.
She stressed that PSX is at the forefront of offering Islamic finance products such as Sukuk, Islamic mutual funds, equities, and exchange-traded funds (ETFs). Notably, more than half of the listed companies on PSX align with Islamic finance principles.
This collaboration is timely as both nations aim to align their financial architectures and explore innovative investment vehicles rooted in Islamic principles.
SECP Highlights Pakistan’s Progress in Faith-Based Finance
Tariq Naseem, Head of Islamic Finance at the Securities and Exchange Commission of Pakistan (SECP), briefed the delegation on recent achievements within Pakistan’s Islamic finance landscape.
He showcased key regulatory initiatives and the growing acceptance of Islamic banking and financial services among local and international investors.
He further emphasized the immense potential for Pakistan and Malaysia to collaborate on setting global standards for Islamic finance, while encouraging cross-border investments in ethical financial instruments.
This aligns with the mutual ambition to Strengthen Islamic Capital Markets and extend their global outreach.
Embracing Innovation and Investor Inclusion
Farrukh H. Sabzwari, MD and CEO of PSX, shared his vision to tap into Malaysia’s deep expertise to further modernize Pakistan’s capital market structure.
He noted that only 0.14% of Pakistan’s population currently participates in capital markets a stark contrast to 1% in Bangladesh, indicating a substantial growth opportunity.
Sabzwari also detailed the PSX’s digital transformation journey, aiming to simplify investment processes and enhance public participation through technology-driven solutions.
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Unified Stakeholder Participation for Future Growth
Prominent capital market leaders were present at the event, including Badiuddin Akber, CEO of Central Depository Company (CDC), Imran Ahmed Khan, Deputy CEO of the National Clearing Company of Pakistan Limited (NCCPL), and Farrukh Ansari, Chairman of the Pakistan Mercantile Exchange (PMEX).
They highlighted their respective institutions’ strategic roles in developing an inclusive and resilient capital market infrastructure.
With Pakistan and Malaysia Collaborate becoming more than a diplomatic slogan, this event set the tone for a transformative partnership aimed at driving sustainable growth through Shariah-aligned financial systems.
