Money Managers Ask Govt to Make Savings Market Attractive for Local Investors

Money managers have urged the government to take measures that make the savings market more attractive for local investors, as part of discussions ahead of Budget 2026–27.

Finance Minister Senator Muhammad Aurangzeb held a meeting with a delegation of the Mutual Funds Association of Pakistan (MUFAP) at the Finance Division to review proposals related to the mutual fund and broader asset management industry.

The delegation, led by Shahzad Dada, outlined suggestions aimed at strengthening savings mobilisation and expanding participation in formal investment channels. A key focus was improving investor access and making savings instruments more appealing for domestic retail investors.

The finance minister acknowledged the role of the mutual fund industry in channeling savings into productive sectors and supporting capital market development. He appreciated the continued engagement of the industry in the budget consultation process.

Discussions covered ways to enhance the depth and efficiency of financial markets, with participants emphasizing the need for stronger institutional support to widen the savings base and improve financial inclusion.

The delegation proposed regulatory and structural improvements to encourage the launch of diversified fund products and to broaden investment options for retail investors. Increasing participation from non-bank financial institutions was also identified as an important factor for sector growth.

Concerns were also raised regarding National Savings Schemes, with suggestions that these instruments should be better aligned with market-based investment products to ensure a balanced and distortion-free savings environment.

A gradual and coordinated policy approach was emphasized.

The finance minister said the proposals would be reviewed in the context of the upcoming budget and reaffirmed the government’s focus on maintaining financial stability while encouraging development of the savings and investment ecosystem.

Both sides agreed to continue engagement to further refine policy directions aimed at strengthening capital markets and expanding the investor base in Pakistan.