Aurangzeb stresses for vibrant Social Impact Financing framework

ISLAMABAD: The Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, presided over a meeting of the Prime Minister’s Committee on Social Impact Financing at the Finance Division.

The meeting focused on advancing innovative financial approaches to drive social progress, improve financial inclusion, and support marginalized communities across Pakistan.Aurangzeb vows to continue reforms on taxation, energy

The Finance Minister emphasized the government’s role in creating a strong policy and regulatory structure for social impact financing, underlining that the private sector should take the lead in implementation efforts. “The private sector has already been doing an exceptional job in this area, and our focus should be on fostering a supportive environment, rather than setting up another government institution. This approach is in line with the government’s goal of rightsizing,” he stated.

He further highlighted the importance of moving beyond charitable activities to more comprehensive impact financing. “It is essential that there is transparency from philanthropy to the end recipients. Digital solutions must be integrated to streamline systems, and accountability along with impact evaluation will help build trust and credibility with stakeholders,” he added.

The discussions focused on the following key priorities:

1. Establishing a policy and regulatory framework to channel philanthropic donations, including Sadaqaat and Zakat, to underserved populations.
2. Mobilizing philanthropic capital to achieve measurable and sustainable social outcomes.
3. Addressing legal, financial, and regulatory obstacles to create a supportive environment for impact financing.
4. Promoting financial inclusion while respecting religious guidelines.
5. Identifying and managing risks to protect social impact investments.
6. Encouraging the use of digital technologies and impact evaluation to strengthen accountability mechanisms.

Participants shared insights on blended financing models, public-private partnerships, and the promotion of microfinance initiatives. Several proposals were made to ensure a comprehensive regulatory framework that would foster private sector innovation while safeguarding investments.

The Finance Minister praised the dedication and contributions of all stakeholders and urged accelerated efforts to finalize 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 in driving meaningful social change.

The meeting brought together a diverse group of stakeholders from both the public and private sectors, attending in person and virtually. Notable attendees included Minister of State for Finance and Revenue Ali Parvez Malik, the Governor of the State Bank of Pakistan, Chairman of the Securities and Exchange Commission of Pakistan (SECP), President of the Pakistan Banks’ Association, Managing Director of Pakistan Bait-ul-Mal, Managing Director of State Life Insurance Corporation, Kamran Shams (CEO of Akhuwat Foundation), Dr. Waqas Ul Hassan (CEO of Karandaaz Pakistan), Dr. Fatima Khushnood (CEO of Pakistan Environment Trust), Hamed Yaqoob Sheikh (Team Leader of FCDO REMIT Program), Shahid Aziz (CEO of Interloop Asset Management), Rashid Bajwa (CEO of National Rural Support Programme), and senior officials from relevant ministries and departments, including the Social Sector and Poverty Alleviation Division, Law and Justice Division, and Finance Division.