Finance Minister Senator Muhammad Aurangzeb held a meeting with a delegation of the Mutual Funds Association of Pakistan (MUFAP) at the Finance Division to discuss the role of the asset management industry in the upcoming Budget 2026–27.
The delegation, led by Shahzad Dada, presented proposals aimed at strengthening the mutual fund sector and improving its contribution to savings mobilisation and capital market development.
The finance minister acknowledged the importance of the industry in channeling household savings into productive investments and supporting financial intermediation in the economy. He appreciated the sector’s continued engagement in the policy consultation process.
Discussions focused on expanding the country’s savings base and improving the efficiency of financial instruments available to investors. Participants emphasized the need for stronger institutional support to encourage savings through formal channels and to enhance the overall depth of financial markets.
Key suggestions included regulatory adjustments to support the introduction of new fund structures and broaden investment options within the asset management industry. The need to increase retail participation in mutual funds was highlighted as a priority to improve financial inclusion and deepen the investor base.
The delegation also raised concerns regarding National Savings Schemes, suggesting the importance of aligning them with market-based investment products to ensure fairness and avoid distortions in the savings ecosystem. A gradual and coordinated approach to any reforms was recommended.
The finance minister said the proposals would be reviewed as part of the ongoing budget formulation process. He reiterated the government’s focus on maintaining a balanced financial framework that supports industry growth while safeguarding macroeconomic stability.
Both sides agreed on continued engagement to further refine policy measures aimed at strengthening the savings culture and enhancing capital market development.
The meeting was attended by senior representatives of MUFAP, including members of its board, along with officials from the Ministry of Finance, including the Director General, Tax Policy Office, and Member (Inland Revenue Operations), among others.
