Finance minister urges lower govt borrowing to spur private sector growth

WEB DESK: Federal Minister for Finance Muhammad Aurangzeb has called for a reduction in the state’s reliance on the domestic banking sector for government borrowing.

Addressing a gathering at the State Bank of Pakistan (SBP) on Monday, the minister stated that diversifying fiscal avenues is necessary to free up capital, thereby allowing commercial banks to facilitate and fund private sector initiatives.

Diversifying fiscal channels

The finance minister noted that the financial ecosystem relies on local commercial banks to finance the fiscal deficit. He stated the necessity of opening up new, digitally enabled avenues to broaden the government’s borrowing options.

Highlighting the call for change, Aurangzeb stated, “We have too much reliance on the banking sector for government borrowing. I do think over a period of time we need to diversify so that the banks have the capacity and the willingness to actually come in and do what they need to do in terms of the private sector lending.”

Prioritising the Customer Journey

Acknowledging the efforts of the financial teams and stakeholders involved in launching the state’s digital initiatives, the minister urged monitoring of operational performance.

He stated that institutions must observe user feedback regarding digital connectivity and ease of access. Maintaining a focus on the client experience, he added, remains foundational to building the trust and credibility required for these financial platforms to operate across Pakistan.