KARACHI: Pakistan is engaging multiple financial and economic sectors ahead of its fiscal year 2026–27 budget, with consultations pointing to a policy focus on boosting savings, reforming taxation and expanding participation in key financial industries, according to official statements released on Tuesday.
The outreach, which includes finance ministry meetings with representatives from the mutual funds, insurance and health care devices sectors, comes as the government seeks to shape its budget strategy amid fiscal constraints and the need to strengthen domestic resource mobilization. The discussions suggest a broader push to deepen financial markets, improve regulatory frameworks and encourage long-term savings.
On Tuesday, Finance Minister Muhammad Aurangzeb and Minister of State for Finance Bilal Azhar Kayani held separate meetings with delegations from the Mutual Funds Association of Pakistan (MUFAP), the Insurance Association of Pakistan (IAP) and the Healthcare Devices Association of Pakistan (HDAP) as part of the ongoing consultation process.
“The government’s focus is on creating a balanced and enabling environment that supports the growth of the asset management industry while maintaining financial stability,” the finance ministry said in a statement following the meeting with mutual fund representatives.
Discussions with the mutual fund sector emphasized the need to expand retail participation, develop alternative investment vehicles and strengthen institutional mechanisms for savings mobilization. Participants also highlighted the importance of aligning National Savings Schemes with broader market dynamics to avoid distortions and ensure a level playing field across financial products.
In talks with the insurance sector, industry representatives raised concerns about inconsistencies in the tax structure and proposed restoring tax incentives for policyholders to promote insurance uptake and long-term savings. The need for greater clarity and coherence in the regulatory and taxation framework was also highlighted.
Meanwhile, discussions with health care device manufacturers focused on taxation, policy support and measures to improve the availability and affordability of medical equipment, alongside facilitating ease of doing business in the sector.
The government said the consultations would continue as it works toward finalizing the FY27 budget, with officials indicating that stakeholder input would be reviewed in line with broader goals of fiscal balance, financial sector development and economic stability.
