We’re using cookies, but you can turn them off in Privacy Settings.  Otherwise, you are agreeing to our use of cookies.  Accepting cookies does not mean that we are collecting personal data. Learn more in our Privacy Policy.

view of bridge

More than 200 licensed brokerage firms operate in Pakistan. Nine of them are listed on the Pakistan Stock Exchange. It is common for brokerage firms to offer other financial services, such as money management, tax advice and financial consultation.

Authors: Saniya Tauseef, Insia Raza

Download PDF


Capital markets are a broad category of markets facilitating the buying and selling of financial instruments. In particular, there are two categories of financial instruments in which markets are involved. These are equity securities, which are often known as stocks, and debt securities, which are often known as bonds. Capital markets involve the issuing of stocks and bonds for medium-term and long-term durations, generally terms of one year or more.

Other than the distinction between equity and debt, capital markets are also generally divided into two categories of markets, the first of which being primary markets. In primary markets, stocks and bonds are issued directly from companies to investors, businesses and other institutions, often through underwriting.

The capital market structure in Pakistan consists of an apex regulator of the markets, the Securities and Exchange Commission Pakistan (SECP), Pakistan Stock Exchange (emerged as a result of merging three stock exchanges), Mercantile Exchanges, Central Depository Company (CDC) and a Clearing and Settlement Company. The structure further includes intermediaries or market participants such as brokers which handle the transaction of shares in the capital markets on behalf of investors.

The level of capital market development is an important determinant of level of savings, efficiency of investment and ultimately rate of economic growth.

This Sector Study shall be focused on the Secondary Capital Markets, and KSE-100 shall be used as the benchmark Index for analysis purpose.


The Pakistan Credit Rating Agency Limited PACRA

PACRA, established in 1994, is the first and leading Credit Rating Agency of Pakistan. Since inception, PACRA has over 8,000 rating opinions spread across 10 distinct financial and more than 45 corporate sectors. This demonstrates PACRA’s expertise, exceptional command, market leadership, and the confidence reposed in its opinions.

Share on Facebook Share on Weibo Share on Twitter Share on LinkedIn