Federal Minister for Finance & Revenue, Muhammad Aurangzeb, has urged banks to increase financing for key sectors including IT, agriculture, and SMEs to promote sustainable economic growth. During a meeting at the Pakistan Banks’ Association (PBA) with the presidents and CEOs of banks, Aurangzeb emphasized the importance of prioritizing lending to these sectors, highlighting their role in financial inclusion and overall economic prosperity.
Zafar Masud, Chairman of PBA, provided an update on initiatives to boost agriculture, SMEs, and the IT sector. The Finance Minister stressed a return to fundamental banking practices, particularly in extending credit to farmers and focusing on cash-flow-based lending. He underscored the potential of the IT sector, advocating for increased support to software houses and freelancers, which are seen as key drivers of growth.
Aurangzeb noted the banking sector’s pivotal role in economic development, calling for a collaborative effort to support priority sectors. He highlighted the collaboration with the Special Investment Facilitation Council (SIFC) and the focus on corporate farming as critical to economic progress. The Minister expressed confidence in managing current challenges, mentioning ongoing cooperation with the IMF and a stable external financing outlook.
Addressing issues faced by the development sector, Aurangzeb acknowledged the impact of additional taxation, high energy costs, and interest rates. He assured that the government is working to provide support, particularly to the large-scale manufacturing sector.
PBA Chairman Zafar Masud presented a detailed analysis of each sector, developed in consultation with the State Bank of Pakistan (SBP). He emphasized PBA’s commitment to collaborating with the Ministry of Finance and SBP to implement recommendations aimed at enhancing the banking sector’s role in the economy.
The meeting, attended by senior government and banking officials including Minister of State Ali Pervaiz Malik and FBR Chairman Amjed Zubair Tiwana, concluded with a commendation of PBA’s efforts to address sector-specific challenges and opportunities.
