ISLAMABAD – Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired a virtual meeting on Monday with the Governor of the State Bank of Pakistan (SBP), Jameel Ahmed, and the Chairman of the Pakistan Banks’ Association (PBA), Zafar Masud, along with their respective teams. The session focused on evaluating progress and outlining new initiatives for financing priority sectors, including IT, agriculture, and SMEs.
During the meeting, Zafar Masud, Chairman of PBA, presented a comprehensive plan to foster an inclusive and sustainable financial ecosystem. He highlighted several long-term initiatives, such as electronic warehouse receipt finance, the establishment of an SME index, corporate farming financing, a venture capital fund for fintechs, the revival of agricultural cooperatives, and the creation of a financial data exchange.
For immediate impact, Masud proposed measures like fan financing, electric vehicle (EV) financing, solarization of tube-wells, and a markup subsidy and first-loss coverage mechanism for SME financing. These initiatives, he suggested, could quickly stimulate growth in priority sectors.
Governor Jameel Ahmed of SBP briefed the Finance Minister on the progress made towards implementing PBA’s proposed initiatives. He noted that the central bank had already issued regulatory notifications to facilitate certain proposals. Additionally, he stressed the importance of proactive consultations with stakeholders, including telecom and power companies, to build data collection mechanisms and scorecards for agriculture and SME sectors, enabling sustainable financing solutions.
Senator Muhammad Aurangzeb commended the efforts of the PBA and SBP, emphasizing the need to prioritize initiatives with short-term and immediate impacts. He urged stakeholders to fast-track these measures with an aim to finalize them by December and begin rollouts in early 2025.
The Finance Minister assured full government support for facilitating consultations among PBA, SBP, and relevant ministries. He announced plans for the Finance Division to host a stakeholder meeting to address concerns, forge consensus, and expedite the implementation of key initiatives.
This strategic push is expected to unlock significant opportunities for growth in Pakistan’s IT, agriculture, and SME sectors, strengthening the nation’s financial ecosystem and driving economic progress.
