Client Name

Pakistan Stock Exchange

Faculty Advisor

Dr. Hilal Anwar Butt

SBS Thought Leadership Areas

Behavioural Studies

SBS Thought Leadership Area Justification

We focus on Investor Psychology in Pakistan’s stock market for example, we investigate psychological, cultural, and behavioural factors that influence investor participation in PSX. We analysed how PSX can align its objectives to financially literate the population against these factors.

Aligned SDGs

GOAL 8: Decent Work and Economic Growth

Aligned SDGs Justification

The project addresses financial exclusion in Pakistan by proposing strategies to broaden retail investor participation in the Pakistan Stock Exchange (PSX). For instance, by promoting digital wallets like JazzCash and Easypaisa for stock investments, we aim to channel household savings into productive economic activities, contributing to national economic growth.

NDA

No

Abstract

This is an experiential learning project which is collaborated with Pakistan Stock Exchange (PSX) and introduces strategic ways of increasing investor participation and financial awareness in Pakistan’s capital market. Acknowledging the essential role of capital markets in economic growth, the project examines domestic barriers, as well as the international best practices, to suggest realistic solutions, correspondent to Pakistan’s culture.

Both primary and secondary research approaches have been adopted in the project, primary research in the form of surveys and cross-tabulations; secondary research covering the trends of the capital market in India, Indonesia, Malaysia, China, Bangladesh, and the United States. It is evident from the key findings of the primary research that major market entry barriers are noted in the case of Pakistan, covering religious and cultural reservations, financial illiteracy, a lack of access to knowledge, a complicated setting up of accounts, and pervasive distrust in regulatory controls.

Furthermore, the secondary research exposes successful investor engagement models of emerging and developed economies that illustrate the influence of digital investment platforms, fractional share ownership, simplified framework of regulations, targeted financial education, and an integration of Sharia-compliant investment options.

The final output of this project comprises of:

  • A detailed comparative study of the behavior of investors, as well as regulations in global markets.
  • Determination of the main barriers to structure and behavior in Pakistan’s capital markets.
  • Strategic and operational recommendations for PSX and policy stakeholders.
  • A roadmap that outlines the means of enhancing the engagement of retailers in terms of education, integration of technology, revised regulations, and gaining public trust.

By making the global lessons applicable to Pakistan’s socio-economic realities, this project hopes to create a more open and informed investor pool, a prerequisite for better liquidity in capital markets, a recharged sense of public trust, and an increasingly sustainable financial sector.

Document Type

Restricted Access

Document Name for Citation

Experiential Learning Project

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Available for download on Tuesday, June 16, 2026

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