Federal Minister for Finance Muhammad Aurangzeb has emphasized the need to decrease the government’s dependence on domestic banks for borrowing. Speaking at an event held by the State Bank of Pakistan (SBP) on Monday, he highlighted the importance of diversifying fiscal borrowing methods to release capital, enabling commercial banks to support private sector development more effectively.
He pointed out that the current financial system heavily relies on local commercial banks to finance the fiscal deficit. Aurangzeb stressed the urgency of introducing new, digitally enabled borrowing channels to expand the government’s funding options beyond traditional banking sources.
In a significant development, the minister remarked, “Our reliance on the banking sector for government borrowing is excessive. Over time, we must diversify so banks can regain the capacity and willingness to focus on private sector lending, which is crucial for economic growth.”
Meanwhile, Aurangzeb acknowledged the efforts of financial teams and stakeholders involved in launching the government’s digital initiatives. He urged continuous monitoring of operational performance, emphasizing the importance of gathering user feedback on digital connectivity and accessibility.
He further noted that prioritizing the customer experience is essential to establishing the trust and credibility necessary for these financial platforms to function effectively across Pakistan, ultimately supporting broader economic objectives.
