A delegation from the Mutual Funds Association of Pakistan (MUFAP) met with Finance Minister Muhammad Aurangzeb to discuss the growth of the mutual fund industry on Thursday.

The meeting, which included the chairman of the Securities and Exchange Commission of Pakistan and senior officials from the Finance and Revenue Divisions, was led by MUFAP Independent Director Aftab Diwan.

The delegation presented an overview of Pakistan’s mutual fund industry, highlighting its role in promoting savings, investments, and capital market development.

They noted that Pakistan’s gross savings rate is currently 13% of GDP, significantly lower than India’s 30%.

Key policy proposals discussed included the development of Infrastructure Funds to encourage private sector participation in infrastructure projects and reforms to the Contributory Pension Scheme to expand retirement savings at the federal level.

The MUFAP also advocated for measures to enhance liquidity for Government Ijarah Sukuks and recommended reinstating tax credits for mutual fund investments to encourage retail participation.

They proposed establishing a Pakistan Higher Education Savings Fund to assist families in planning for their children’s education.

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Finance Minister Aurangzeb appreciated the MUFAP’s insights and reiterated the government’s commitment to enhancing Pakistan’s investment landscape.

Aurangzeb instructed SECP and relevant authorities to evaluate the proposed reforms to foster a more robust and inclusive financial ecosystem.

They agreed that a well-regulated mutual fund industry would contribute to economic stability and provide secure investment opportunities for the public.