Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, here on Tuesday, held a meeting with a delegation of the Insurance Association of Pakistan (IAP) to discuss matters relating to the insurance sector in the context of the Federal Budget 2026-27.
The delegation was led by Chairman IAP, Shoaib Javed Hussain, according to press release issued by the Finance Ministry.
The minister appreciated the constructive engagement of the insurance industry in contributing to the budget consultation process and emphasized the need for sustained dialogue with key sectors to ensure that policy measures remain aligned with economic priorities and contribute to long-term financial stability and growth.
The delegation presented a set of proposals focusing primarily on taxation and regulatory considerations with respect to the insurance sector. Participants discussed various aspects of the existing taxation framework, including the interaction between federal and provincial levies, and their implications for the sector. The need for consistency, coherence and predictability in the overall tax structure was highlighted in the context of facilitating sectoral development.
Discussions also covered the need to ensure clarity in the application of sector-specific laws governing insurance, particularly in relation to the broader taxation framework. The delegation underscored the importance of ensuring that existing legal and regulatory principles remain appropriately aligned with evolving policy and accounting standards.
The delegation further proposed measures aimed at promoting savings and expanding insurance penetration, including the possible restoration of tax incentives for policyholders. Facilitating long-term savings instruments and encouraging wider participation, particularly among salaried individuals, were identified as key areas for consideration. The participants also shared views on strengthening the role of the insurance sector in financial sector development, including through improved alignment of investment frameworks and long-term financial instruments. Continued interaction with regulators and policymakers on sector-specific issues was highlighted as essential.
The minister acknowledged the proposals presented by the delegation and noted that these would be carefully reviewed in the context of the upcoming budget. He reiterated the government’s commitment to advancing the development of the financial sector, while maintaining a balanced and sustainable approach to fiscal policy.
The meeting concluded with a shared understanding on the need for ongoing engagement between the government and the insurance industry to facilitate informed policymaking and enhance the sector’s contribution to economic growth. The meeting was attended by Shoaib Javed Hussain, Chairman IAP;. Muhammad Hisham, Senior Vice Chairman IAP; Omer Farooq, Chairman IAP Tax Committee; Asim Nagi, Member IAP Tax Committee, and other IAP officials, along with senior officials from the Ministry of Finance, including the Director General, Tax Policy Office, Member (Inland Revenue Operations), amongst others.
Separately, Aurangzeb held a consultative meeting with Mutual Funds Association of Pakistan (MUFAP) to discuss the role of the mutual fund industry in the context of the Federal Budget 2026-27.
According to press release issued by the Finance Ministry, the MUFAP delegation was led by its Chairman, Shahzad Dada.
On the occasion, the minister appreciated the continued engagement of the asset management industry in supporting policy dialogue and acknowledged role of the sector in mobilizing savings, strengthening financial intermediation, and contributing to the development of Pakistan’s capital markets.
The discussion focused on the broader savings landscape and the need to further enhance the efficiency and depth of financial instruments available to investors. Participants highlighted the need to reinforce institutional mechanisms that facilitate savings mobilization, while ensuring that policy measures remain aligned with long-term financial sector objectives.
The meeting covered matters relating to the mutual fund industry, including views on the budget framework and the need for regulatory improvements to support sector growth. Participants highlighted the importance of facilitating the creation of alternative fund vehicles to broaden investment avenues within the asset management space.
The need to enhance retail participation in mutual funds was emphasized as a key priority to deepen the savings base and expand financial inclusion. The importance of fostering greater participation by non-bank financial institutions was also highlighted in the context of strengthening the mutual fund industry and overall market development.
The participants also shared views on National Savings Schemes (NSS), emphasizing the need to align these instruments with broader market dynamics to avoid distortions and ensure a level playing field across savings products. A gradual and well-coordinated approach in this regard was considered important. The Finance Minister acknowledged the perspectives shared by the delegation and noted that their proposals would be carefully reviewed in the context of the ongoing budget formulation process.
He emphasized the government’s focus on creating a balanced and enabling environment that supports the growth of the asset management industry while maintaining financial stability, and reiterated the need to further strengthen the savings ecosystem as a key pillar of sustainable economic development. The meeting concluded with a shared understanding on the need for ongoing engagement between the government and the mutual fund industry to support informed policy making and enhance the sector’s contribution to capital market development and resource mobilization.
The meeting was attended by Ms. Mashmooma Zehra Majeed, Chief Executive MUFAP; Board of Directors MUFAP, Dr. Amjad Waheed, Muhammad Abdul Samad, Imtiaz Gadar, Khaldoon Bin Latif, along with senior officials from the Ministry of Finance, including the Director General, Tax Policy Office and Member (Inland Revenue Operations) amongst others.