Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, convened separate meetings on Tuesday with representatives from the Mutual Funds Association of Pakistan (MUFAP) and the Insurance Association of Pakistan (IAP) to discuss their proposals for the upcoming federal budget 2026-27.
Govt consults financial sector stakeholders to strengthen savings, investment landscapehttps://t.co/j5vuchfMAY#govt #financial #stakeholders #strengthen pic.twitter.com/RxW41SMecH
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Minister Aurangzeb warmly welcomed both delegations, expressing his appreciation for the ongoing collaboration and input from the asset management and insurance industries in shaping economic policy. He recognized the crucial role of the mutual fund sector in encouraging savings and bolstering the capital markets.
During the MUFAP meeting, discussions centered on strengthening the frameworks for savings mobilization and enabling the creation of diverse investment options through alternative fund vehicles. Participants emphasized the importance of boosting retail investor participation in mutual funds to broaden the savings base and promote financial inclusion. The need for increased involvement from non-bank financial institutions was also highlighted as a means to fortify the mutual fund industry and drive overall market development.
MUFAP representatives also shared perspectives on National Savings Schemes, advocating for their alignment with broader market dynamics to prevent market distortions and ensure fair competition among various savings products. Minister Aurangzeb assured the delegation that their proposals would receive careful consideration during the budget formulation process.
In a separate meeting with the IAP delegation, led by Chairman Shoaib Javed Hussain, the insurance industry presented proposals focusing on taxation and regulatory aspects. Discussions covered the current taxation framework, including the interplay between federal and provincial levies, with a focus on the need for consistency and predictability.
The IAP delegation proposed measures to encourage savings and expand insurance penetration, including the potential reinstatement of tax incentives for policyholders. Facilitating long-term savings instruments and promoting wider participation, particularly among salaried individuals, were identified as key priorities.
Minister Aurangzeb reaffirmed the government’s dedication to advancing the financial sector while maintaining a balanced and sustainable approach to fiscal policy. Both meetings concluded with a mutual understanding of the importance of continued dialogue to support informed policymaking and enhance the sector’s contribution to economic growth.
Senior officials from the Ministry of Finance, including the Director General of the Tax Policy Office and Member (Inland Revenue Operations), along with representatives from MUFAP and IAP, were in attendance.
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