Pakistan finance minister discusses savings reforms with mutual funds' body

Pakistan’s Finance Minister Muhammad Aurangzeb met with the Mutual Funds Association of Pakistan (MUFAP) on Tuesday to discuss measures for boosting savings and capital market reforms.

The meeting discussed proposals to strengthen the savings ecosystem by aligning National Savings Schemes with market dynamics.

Aurangzeb welcomed the delegation and praised the industry for supporting ongoing policy discussions.

He recognized the vital role mutual funds play in mobilizing domestic savings and strengthening financial intermediation. The minister emphasized that these contributions are essential for developing robust capital markets across the country.

What steps have been proposed to expand the savings base?

The session focused on the broader savings landscape and the efficiency of available financial instruments. Participants highlighted the need for institutional mechanisms that facilitate savings while staying aligned with long-term financial goals.

They also discussed views on the budget framework and necessary regulatory improvements to support sector expansion.

Deepening the savings base through increased retail participation remains a key priority for the government. The meeting participants stressed the importance of involving non-bank financial institutions to strengthen the overall market. Fostering these connections will help expand the investment avenues available to the general public.

Discussions also covered the National Savings Schemes and their impact on market competition. The delegation emphasized aligning these instruments with market dynamics to ensure a level playing field for all products. A coordinated approach was deemed necessary to avoid economic distortions in the savings sector.

How will MUFAP proposals impact the Federal Budget 2026-27?

Aurangzeb assured the delegation that the government would carefully review their proposals during the budget formulation. He reiterated the focus on creating an enabling environment that maintains financial stability while supporting industry growth.

The meeting ended with a commitment to continued engagement between the government and money managers.