Islamabad: The Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, convened with representatives from the Mutual Funds Association of Pakistan (MUFAP), alongside key officials from the Securities and Exchange Commission of Pakistan (SECP) and the Finance and Revenue Divisions. The meeting focused on fostering growth within Pakistan’s mutual fund industry.

According to a statement by Press Information Department, the MUFAP delegation, led by Mr. Aftab Diwan, provided an overview of the mutual fund sector’s role in promoting savings, investments, and capital market development. The delegation highlighted the sector’s potential to enhance economic growth and financial inclusion by channeling savings into productive investments. They noted Pakistan’s gross savings rate of 13% of GDP, compared to India’s 30%, as an area needing improvement.

The discussions included several policy proposals. The delegation advocated for the development of Infrastructure Funds to involve private sector investment in essential projects. They also emphasized the need for Contributory Pension Scheme Reforms to bolster retirement savings at the federal level.

Further proposals were made to improve market liquidity for Government Ijarah Sukuks by boosting institutional participation and introducing open market operations. To incentivize retail investors, MUFAP suggested reinstating tax credits for mutual fund investments. They also proposed creating a Pakistan Higher Education Savings Fund, inspired by international education savings models, to assist families in planning financially for education.

Finance Minister Aurangzeb appreciated the insights shared by MUFAP and reiterated the government’s commitment to enhancing Pakistan’s investment environment. He instructed SECP and relevant authorities to assess and implement the suggested reforms, aiming for a more robust financial ecosystem.

The meeting concluded with a consensus on the importance of a well-regulated mutual fund industry for economic stability and providing secure investment avenues for the public, contributing to financial security and sustainable development.