ISLAMABAD, (TDI): Pakistan’s Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired a pivotal meeting of the Prime Minister’s Committee on Social Impact Financing at the Finance Division today.
The session focused on advancing innovative financial solutions to drive social impact, enhance financial inclusion, and uplift marginalized communities in Pakistan.
Bringing together key stakeholders from both the public and private sectors, the meeting saw participation from a broad range of influential figures, including Minister of State for Finance Mr. Ali Parvez Malik, Governor of the State Bank of Pakistan, Chairman of the Securities and Exchange Commission of Pakistan (SECP), and leaders from major financial institutions and social organizations such as Akhuwat Foundation and Karandaaz Pakistan.
The meeting underscored the critical role of the private sector in advancing social impact financing, with the government positioning itself as a facilitator.
Senator Aurangzeb emphasized the importance of a strong regulatory framework to support private sector initiatives.
“The private sector has already demonstrated remarkable leadership in this space, and it is crucial that we focus on creating an enabling environment rather than setting up additional government institutions,” he said. This approach aligns with the government’s broader objective of rightsizing the public sector.
The Finance Minister further stressed the need to shift from traditional charity models to more sustainable and impactful financing mechanisms.
He called for increased transparency in philanthropic efforts, with digital solutions integrated to streamline processes and improve efficiency.
Also Read: Finance Minister Chairs Key Meeting on SOE Reform
“Digital solutions are essential to ensuring transparency and accountability, which will foster trust and credibility among all stakeholders,” Aurangzeb added.
Key areas of focus discussed during the meeting included:
- Policy and Regulatory Frameworks: Connecting philanthropic contributions, including Zakat and Sadaqaat, to underserved communities.
- Mobilizing Philanthropic Capital: Ensuring that charitable funds translate into tangible, sustainable social outcomes.
- Legal and Regulatory Challenges: Addressing obstacles to create a conducive environment for impact financing.
- Financial Inclusion: Enhancing access to financial services while staying aligned with Islamic principles.
- Risk Mitigation: Safeguarding social impact investments through risk management strategies.
- Promoting Digitalization: Leveraging technology for impact evaluation and strengthening accountability mechanisms۔
The meeting also explored innovative financing models, such as blended finance and public-private partnerships, aimed at fostering microfinance initiatives and encouraging the private sector’s participation in social development.
Also Read: Finance Minister, World Bank Team Discuss Economic Reforms
Stakeholders highlighted the need for a comprehensive regulatory framework that would not only spur innovation but also protect investments.
In closing, Senator Aurangzeb praised the commitment of all parties involved and directed the swift finalization of the proposed policy framework.
He reaffirmed the government’s commitment to supporting initiatives that promote inclusive growth, sustainable development, and community welfare, while empowering the private sector to lead the charge in creating lasting social impact.
