ISLAMABAD, May 5, 2026 – The Mutual Funds Association of Pakistan (MUFAP) presented its budget proposals for 2026-27 in a meeting with Finance Minister Muhammad Aurangzeb, focusing on strengthening the mutual fund industry and enhancing the country’s savings framework.
The meeting, held at the Finance Division, was led by MUFAP Chairman Shahzad Dada, along with senior representatives of the asset management sector.
Focus on Savings and Financial Market Development
During the discussion, participants emphasized the importance of the mutual fund sector in mobilizing savings, improving financial intermediation, and supporting the development of capital markets in Pakistan.
They highlighted the need to enhance the efficiency and depth of financial instruments available to investors, while aligning policy measures with long-term economic objectives.
Regulatory Reforms and Industry Growth
The delegation shared proposals aimed at improving the regulatory framework to support growth in the asset management industry.
Participants stressed the importance of introducing alternative fund vehicles to broaden investment opportunities and diversify the financial ecosystem.
Enhancing Retail Participation
A key focus of the meeting was increasing retail participation in mutual funds to deepen the savings base and promote financial inclusion.
The delegation also highlighted the role of non-bank financial institutions in expanding the reach of mutual fund products and strengthening overall market development.
National Savings Schemes and Market Alignment
Discussions also covered the role of National Savings Schemes (NSS), with participants calling for better alignment of these instruments with market dynamics to ensure a level playing field across savings products.
A gradual and coordinated approach was recommended to avoid market distortions.
Government Response
Finance Minister Aurangzeb appreciated the input from MUFAP and assured that the proposals would be reviewed as part of the ongoing budget formulation process.
He reiterated the government’s commitment to creating a balanced policy environment that supports the growth of the asset management industry while maintaining financial stability.
Continued Engagement Emphasized
The meeting concluded with both sides agreeing on the importance of continued engagement between the government and the mutual fund industry to support informed policymaking and enhance the sector’s contribution to economic growth.
Senior officials from the Ministry of Finance and MUFAP, including board members and executives, also attended the meeting.