Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has emphasized the need for a structured approach to measure the actual social impact of the financial inclusion efforts.
He was chairing the second meeting of the Prime Minister’s Committee on Social Impact Financing here at the Finance Division on Wednesday.
The session aimed at exploring innovative financial solutions to drive social impact, enhance financial inclusion, and uplift marginalized communities across Pakistan. The meeting brought together a diverse group of stakeholders from the public and private sectors.
Before initiating the meeting, the Finance Minister emphasized the significance of addressing both economic reforms and critical existential challenges facing Pakistan.
The meeting proceeded with a follow-up presentation providing an update on actions from the previous session, followed by presentations from Karandaaz Pakistan and the Ministry of Poverty Alleviation and Social Safety.
Karandaaz’s presentation highlighted the global growth of impact investing, which has reached $1.571 trillion in assets under management, growing at an annual rate of 21% since 2019.
The organization proposed the establishment of a Green Impact Fund (GIF), a $250 million initiative aimed at financing green micro and small enterprises (MSMEs).
This fund would offer concessional loans, equity with first-loss guarantees, and technical assistance, drawing support from global climate financing sources, commercial institutions, and public or donor funding.
The discussion underscored the potential of such initiatives to foster economic growth, address climate challenges, and promote bottom-up development by creating jobs and empowering underserved communities.
The Ministry of Poverty Alleviation and Social Safety also provided insights into its ongoing initiatives within the social impact financing framework.
At the conclusion of the meeting, the Finance Minister emphasized the need for a structured approach to measure the actual social impact of financial inclusion efforts.
The Finance Minister also highlighted the importance of capacity building across all sectors and the creation of comprehensive dashboards for tracking progress.
He urged all stakeholders to accelerate efforts in finalizing and operationalizing the proposed frameworks, ensuring that Pakistan’s goals for sustainable development, climate resilience, and poverty alleviation are realized.