Pakistan, Bangladesh and Sri Lanka ink tripartite agreement to strengthen capital markets

In a bid to enhance regional capital market integration, the national stock exchanges from Pakistan, Bangladesh and Sri Lanka have decided to collectively sign a memorandum of understanding (MoU). 

The Pakistan Stock Exchange (PSX), Dhaka Stock Exchange (DSE) and Colombo Stock Exchange (CSE) inked this agreement on Thursday in Sri Lanka’s capital city Colombo. As per a press release by the DSE, if concerned parties follow the agreement correctly, it could greatly boost human resource collaboration, investor protection, human resource collaboration, and the development of technology and new products.

Chairman Akif Saeed of the Securities and Exchange Commission of Pakistan (SECP) attended the signing ceremony along with DSE Chairman Mominul Islam and CSE Chairman Dilshan Wirasekara. Key officials and directors from concerned institutions were reportedly also present at the high profile event to facilitate the process. 

Reports suggest that knowledge sharing across capital markets will be another byproduct of the agreement. This could result in a vast movement of investment funds between the three nations, allowing for investors to purchase stocks of the publicly listed companies they believe will rise -- regardless of which of the three countries the firm calls home. 

A key official present at the meeting commented on the developments, claiming that the tripartite agreement could allow for the development of ‘strong and efficient capital markets’. This can be achieved via combined investments in technology and experience-sharing. 

According to reports, Chairman Akif Saeed, accompanied by senior executives from the PSX, held meetings with officials from the DSE and CSE. Aside from official meetings, executives also found other avenues of collaboration. For instance, DSE’s chairman joined a panel discussion regarding the effect of market regulation on the development of capital markets. 

In an official statement, DSE’s Chairman expressed concerns regarding the small size of the stock exchanges in South Asia which causes them to face serious operational and technological constraints. Barring India’s stock exchange, these challenges that exchanges must face in South Asia hinder markets, holding them back from reaching their ‘full capacity’.

However, the PSX has been on a tear over the past year. Data from late March 2025 reveals that the ALLSHR (All shares) index has shot up by a staggering 67.77 percent over just one year, with the KSE-100 index recording an even greater annual growth of 78.70 percent – a growth rate that many would categorize as nothing short of meteoric.