Govt pushes for social impact financing

FinMin highlights private sector leadership, digital accountability in financial solutions

ISLAMABAD:

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, on Monday reiterated the government's commitment to supporting initiatives that foster inclusive growth, sustainable development, and community welfare while empowering the private sector to drive meaningful social impact.

The minister chaired a meeting of the Prime Minister's Committee on Social Impact Financing, which brought together diverse stakeholders from the public and private sectors, according to a press release issued by the finance ministry.

Participants included Minister of State for Finance and Revenue Ali Parvez Malik, the Governor of the State Bank of Pakistan, the Chairman of the SECP, the President of the Pakistan Banks' Association, the MD of Pakistan Bait-ul-Mal, and the MD of State Life Insurance Corporation, among others.

The session focused on advancing innovative financial solutions to drive social impact, enhance financial inclusion, and uplift marginalised communities in Pakistan.

Aurangzeb highlighted the government's role in establishing a robust policy and regulatory framework for social impact financing while leaving implementation to the private sector.

"The private sector has already been doing an outstanding job in this domain, and we must focus on creating an enabling environment rather than establishing yet another government institution. This aligns with the government's rightsizing objectives," Aurangzeb stated.

He also stressed the importance of transitioning from traditional charity models to broader impact financing.

"Transparency from philanthropy to the end beneficiaries is essential. Digital solutions must be integrated to ensure efficient systems, while accountability and impact evaluation will build trust and credibility among stakeholders," he added. Discussions centred on several key priorities, including developing a policy and regulatory framework to connect philanthropic contributions, such as Sadaqaat and Zakat, with underserved segments of society. Participants explored mobilising philanthropic capital for sustainable social outcomes, addressing legal challenges, and creating an enabling environment.