SECP Opens Review of Pakistan’s Corporate Bond and Sukuk Rules

Pakistan’s Securities and Exchange Commission has opened a review of the rules that govern corporate bond and sukuk issuance, giving a newly formed working group 45 days to recommend a faster and cheaper route to market. Mettis Global reports that the notice carries a July 30, 2026 date, came from the regulator’s Securities Market Division, specifically its Policy, Regulation & Development Department, and starts the 45-day clock at the group’s constitution.

SECP’s working group, chaired by Commissioner Muhammad Ali Farid Khwaja, will examine the rules governing debt securities and sukuk issuance in Pakistan, aiming to make the process quicker, simpler and cheaper, according to Pakbiz. Mettis Global, Bol News and Pakbiz report a 45-day deadline but no calendar date; 45 days from the July 30, 2026 notification points to mid-September 2026.

A Separate Official Push on Corporate Debt

Separately, a July 18, 2026 meeting of the Capital Market Development Council, chaired by Finance Minister Muhammad Aurangzeb in Islamabad, produced a readout stating that “the corporate debt market continues to remain underdeveloped relative to the financing needs of the economy.” The readout also stated: “Further efforts are required to deepen the debt capital market, reduce reliance on bank financing.” Both passages appear in The Nation’s account of the meeting, which lists SECP, the Pakistan Stock Exchange and the State Bank of Pakistan among the institutions represented.

Sukuk issuance overall has been rising fast. The Express Tribune, reporting a Pakistan Stock Exchange investor briefing, put total sukuk issuance at Rs3.5 trillion in fiscal year 2026 against Rs2.2 trillion in FY2025, figures that report didn’t break out between sovereign and corporate issuance. The same report put total capital-market debt issuance at Rs6.4 trillion, again with no sovereign or corporate breakout.

Who Sits on the Panel

Pakbiz names Executive Director Musarat Jabeen as the official who issued the notification. The panel is chaired by Khwaja, with SECP Executive Director Imran Inayat Butt as coordinator. Its members include Farrukh H. Sabzwari, chief executive of the Pakistan Stock Exchange; Maheen Rehman of InfraZamin Pakistan; Badiuddin Akbar of the Central Depository Company; Syeda Sharmeen Ahmed, managing director of corporate finance at Topline Securities; Muhammad Farid Alam of AKD Securities; and Muhammad Khaliq-uz-Zaman of the Finance Ministry’s Debt Management Office, according to Mettis Global and Pakbiz. Askari Bank, the credit rating agency PACRA and the law firm Mohsin Tayebaly & Co. are each represented, and Bol News puts the panel at 12 members.

What the Group Will Examine

The mandate covers three broad areas, according to Bol News: whether the credit rating framework operates efficiently and transparently, where the bottlenecks sit in the debt issuance process from start to finish, and how the Sharia and legal frameworks governing sukuk issuance perform. Bol News also lists further tasks, including a review of total issuance costs, the drafting of standardized documentation, proposed regulatory amendments and benchmarking against international practice. It blames the market’s weak growth on how long issuance takes and how much it costs.

SECP Chairman Dr. Kabir Ahmed Sidhu has described developing the corporate debt market as a priority for the regulator, saying a strong debt market supplies long-term capital to industry and the government, according to Mettis Global.

What Comes Next

Nothing has been amended so far, and the group’s job is to produce recommendations rather than enact them. It isn’t clear what SECP will do with the findings once they arrive, and the reports don’t say. The July 18 council meeting set out separate reform priorities that included sukuk market development, green and sustainable instruments, SME financing and strengthening the Islamic capital market, per The Nation, subjects The Halal Times has covered previously in Pakistan’s use of Islamic finance for infrastructure deals and in how to digitize Islamic banking in Pakistan. Mettis Global, Bol News and Pakbiz each report a 45-day deadline, timed from the group’s formation by Mettis Global and Bol News, and none gives a calendar date. Counting 45 days from the July 30, 2026 notification falls in mid-September 2026.

Frequently Asked Questions

What is the SECP working group on corporate debt market reform?

It is a working group SECP notified on July 30, 2026 to carry out a full review of the corporate debt market, aiming to improve efficiency, cut issuance timelines and costs, and broaden participation, according to Mettis Global. It is chaired by SECP Commissioner Muhammad Ali Farid Khwaja.

When must Pakistan’s SECP working group submit its report?

Mettis Global, Bol News and Pakbiz all report a 45-day deadline for the group’s report, with Mettis Global and Bol News timing it from the group’s formation. None gives a calendar deadline; counting 45 days from the July 30, 2026 notification puts it in mid-September 2026.

Who is on the SECP corporate debt working group?

Members named by Mettis Global and Pakbiz include Pakistan Stock Exchange chief executive Farrukh H. Sabzwari, InfraZamin Pakistan’s Maheen Rehman, Central Depository Company’s Badiuddin Akbar, and representatives of Askari Bank and PACRA, with SECP’s Imran Inayat Butt as coordinator.

How large is Pakistan’s corporate sukuk market?

No source in this reporting gives a size for Pakistan’s corporate sukuk market specifically. The Express Tribune reports total sukuk issuance of Rs3.5 trillion in fiscal year 2026, but that figure was not broken down between sovereign and corporate issuance.

What will the SECP working group review?

Per Bol News, the mandate covers the credit rating framework, the debt issuance process, and the Sharia and legal frameworks for sukuk, alongside issuance costs, documentation and benchmarking against international practice.