Finance Minister Muhammad Aurangzeb on Friday reaffirmed the government’s commitment to strengthening Pakistan’s investment landscape.
During a meeting with a delegation of the Mutual Funds Association of Pakistan (MUFAP), also attended by senior officials of the Finance and Revenue Divisions, and the Securities and Exchange Commission of Pakistan (SECP) chairman, the minister was briefed on Pakistan’s mutual fund industry and its role in promoting savings, investments, and capital market development.
The delegation highlighted that mutual funds play a critical role in channeling savings into productive investments, supporting economic growth, and expanding financial inclusion. It noted that Pakistan’s gross savings rate, currently at 13% of GDP, is significantly lower than regional peers such as India, which has a savings rate of 30%.
The discussion also covered key policy proposals to strengthen the financial sector. The delegation emphasized the need to develop infrastructure funds, allowing private sector participation in essential infrastructure projects. They also advocated for contributory pension scheme reforms, highlighting the importance of expanding structured retirement savings at the federal level. Further, they proposed policy measures to enhance market liquidity for Government Ijarah Sukuks by improving institutional participation and introducing open market operations.
To encourage retail investor participation, the MUFAP delegation recommended reinstating tax credits for mutual fund investments to provide incentives for long-term savings. They also proposed the establishment of a Pakistan Higher Education Savings Fund, modeled after successful global education savings plans, to help families plan for their children’s education.
Appreciating the briefing, Aurangzeb directed the SECP and relevant authorities to evaluate the proposed reforms and ensure the development of a more robust and inclusive financial ecosystem.
The meeting concluded with a shared understanding that a well-regulated and growing mutual fund industry would not only contribute to economic stability but also offer secure and profitable investment opportunities for the public, promoting financial security and sustainable development.