Finance Minister lauds role of DFIs
Business
Finance Minister lauds role of DFIs
ISLAMABAD (APP) - Caretaker Federal Minister for Finance, Revenue and Economic Affairs Dr Shamshad Akhtar said the Development Finance Institutions (DFIs) could be the potential drivers of growth and development of the capital market.
She was chairing a meeting with the Securities and Exchange Commission of Pakistan (SECP) chairman and the heads of DFIs to review the progress made by the DFIs on the establishment of a Private Equity and Venture Capital (PE & VC) Fund, according to press statement issued by the finance ministry.
The minister said the initiative was geared towards energising the investment landscape and extending needed resources for start-ups and SMEs to grow their businesses, harnessing the potential of capital markets to diversify sources of financing, while also bolstering the country’s economic prospects.
She emphasised that the role of DFIs was distinct from commercial banks and this needed to be reflected in their business philosophy, adding their investment policies and how these policies are regulated can have a powerful influence on the pattern of financial assets in the capital market.
The DFIs while re-affirming their commitment also apprised the finance minister of the progress and impediments faced in the process. Earlier, in a meeting held on Sept 30, 2023, the DFIs had committed to launch the PE & VC Fund to catalyze economic revival.
During the meeting, the DFIs were urged to share comprehensive profiles that encompass existing operations and activities, and their future transformation and diversification plans to achieve sustainable growth aligned with their conceptualised role.
For this purpose, the finance minister urged the SECP to lend support to the DFIs and advised the commission to actively engage with DFIs to highlight the opportunities present in the capital market.
The envisaged strategic shift in the business policies by DFIs is likely to have a far-reaching impact on the nation’s financial landscape, creating new opportunities for investment, economic growth, and innovation, the statement said.
It underscores the government’s commitment to fostering a dynamic and resilient economy by encouraging private-sector investment, it added.
