Pakistan on Wednesday ramped up cybersecurity measures to protect its capital market infrastructure institutions from potential Indian hacking attempts, ensuring the continued smooth operation of currency and capital markets.
The decision was taken during a high-level meeting at the finance ministry focused on rapid risk assessment in light of India's unprovoked attacks on Pakistani civilians, which have further escalated regional tensions. The equity market regulatorthe Securities and Exchange Commission of Pakistanalso decided to block overseas access to certain websites as a preemptive move to neutralise potential cyber threats.
These actions came just hours before Finance Minister Muhammad Aurangzeb briefed UK Minister of State for South Asia Hamish Falconer on India's unprovoked and blatant aggression against Pakistan's civilian population.
The finance minister met with Hamish Falconer, UK Minister of State for South Asia, in London on Wednesday, according to an announcement by the finance ministry.
It added that during the meeting, the finance minister briefed Falconer on India's unprovoked and blatant attacks on civilian population in Pakistan and Azad Jammu and Kashmir last night, which had resulted in the deaths of 26 civilians. He reiterated Pakistan's resolve to defend its territorial sovereignty and respond to India's aggression in a befitting manner.
The finance minister recalled that Pakistan had made multiple offers to India to join an impartial and independent investigation into the Pahalgam incident, including through the UK's good offices.
"India had rebuffed Pakistan's offer and committed wanton aggression against Pakistan," it added. The finance minister called on the international community to condemn India's actions and underscored the importance of a just solution to the Jammu and Kashmir dispute for lasting peace and stability in South Asia.
The finance ministry stated that Minister Falconer expressed his condolences over the loss of civilian lives in the Indian attacks and hoped that tensions in South Asia would be diffused through dialogue and engagement.
The Finance Ministry stated that an emergency meeting was convened to assess the current financial landscape in light of escalating regional tensions following the recent belligerent Indian aggression.
The meeting was attended by the Governor of the State Bank of Pakistan, Chairman of the Securities and Exchange Commission of Pakistan (SECP), Secretary Finance, and senior officials from the Finance Division.
In a comprehensive and strategic discussion revolving around the situation and functioning of equity, debt, foreign currency and interbank markets, participants conducted a rapid risk assessment and evaluated the current threat perception with an emphasis on ensuring national financial stability and security, said the ministry.
Recognising the critical importance of market stability, the meeting reaffirmed the government's firm commitment to maintaining business continuity across all financial and allied sectors, it added.
The federal government extended key assurances to stakeholders, underscoring that robust measures are being implemented to safeguard Pakistan's economic infrastructure and provide calm, clarity, and confidence to the financial markets.
The participants also emphasized the importance of heightened vigilance against a wide range of threats, with a special focus on cyber security and communication infrastructure. Contingency plans have been reinforced to ensure operational resilience and secure communication lines across financial institutions, it added.
To maintain proactive oversight, the meeting decided on regular reviews of the evolving situation. These ongoing evaluations will support the government's efforts to provide consistent guidance and timely reassurance to the financial markets and the wider business community.
The Finance Minister reiterated that Pakistan's financial system remains stable and secure, and that all relevant authorities are working in close coordination to uphold national economic integrity in the face of emerging challenges.
The SECP also held an emergent meeting to assess the situation in the wake of geopolitical tension in the region. In order to preserve market stability and investor confidence at this time, the SECP reaffirms its commitment to ensure continuity in capital market operations.
The Capital Market Infrastructure Institutions (CMIIs), including Pakistan Stock Exchange, National Clearing Company of Pakistan and Central Depository Company also participated in the meeting. They assured that robust and efficient risk management measures are in place for ensuring smooth functioning of Pakistan's capital markets.
In response to the current situation, the SECP has advised all CMIIs to immediately enhance their security protocols and operational continuity measures. This includes strengthening cyber security defenses across all trading, risk management, clearing, and settlement systems and activating full business continuity plans. The CMIIs were further advised to reinforce their physical security arrangements at all facilities.
The SECP remains vigilant and will issue further updates, as necessary. Market participants are encouraged to continue operations as usual, with the SECP and CMIIs closely monitoring developments to safeguard market integrity, according to a statement by the SECP.
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