Islamabad: Finance Minister Muhammad Aurangzeb has underscored the importance of fortifying the savings ecosystem as a vital component of sustainable economic growth. In a meeting with a delegation from the Mutual Funds Association of Pakistan (MUFAP) in Islamabad, Aurangzeb emphasized the role of the mutual fund industry in the context of the upcoming Federal Budget 2026-27.
According to Radio Pakistan, the delegation, led by MUFAP Chairman Shahzad Dada, discussed issues related to the mutual fund sector and its influence on Pakistan’s capital markets. The Finance Minister expressed appreciation for the asset management industry’s ongoing involvement in policy discussions and recognized the sector’s contribution to savings mobilization and financial intermediation.
Discussions centered on the savings landscape, with a focus on enhancing the efficiency of financial instruments available to investors. Participants stressed the importance of reinforcing institutional mechanisms to facilitate savings while ensuring alignment with long-term financial sector goals. The dialogue also covered regulatory improvements needed to foster sector growth and the creation of alternative fund vehicles to expand investment options.
Enhancing retail participation in mutual funds was identified as a priority to strengthen the savings base and boost financial inclusion. The meeting also highlighted the need for greater involvement of non-bank financial institutions to support the mutual fund industry and market development. Views on National Savings Schemes were shared, advocating for alignment with market dynamics to prevent distortions.
Finance Minister Aurangzeb acknowledged the delegation’s insights and assured that their suggestions would be reviewed during the budget formulation process. He reiterated the government’s commitment to fostering an enabling environment for the asset management industry, balancing growth with financial stability. The meeting concluded with consensus on the necessity of ongoing collaboration between the government and the mutual fund industry to enhance policymaking and bolster the sector’s role in capital market development.