ISLAMABAD: The federal government has introduced a draft Social Impact Financing (SIF) Framework aimed at mobilising innovative financial instruments to address Pakistan’s pressing development and environmental challenges. The framework was unveiled by Finance Minister Senator Muhammad Aurangzeb during a high-level meeting of the Committee on Social Impact Financing, convened at the Finance Division on Friday.
Formed on the Prime Minister’s directives, the committee comprises senior officials from key ministries, the State Bank of Pakistan, the Securities and Exchange Commission of Pakistan, microfinance institutions, philanthropic organisations, and development partners. The meeting focused on finalising a long-term structure to channel public and private capital toward measurable outcomes in sectors such as education, health, poverty alleviation, population stabilisation, and climate resilience.
The framework envisions performance-based financing instruments—such as impact bonds, performance-linked grants, and guarantees—ensuring funding is tied to measurable results rather than input-based spending. This outcome-oriented approach is intended to boost accountability and transparency in service delivery while aligning resource allocation with Pakistan’s Sustainable Development Goals (SDGs).
Participants also reviewed key elements of the proposed framework, including funding strategies, risk mitigation mechanisms, governance structures, and implementation timelines. The Finance Minister underscored the need for robust public-private partnerships and sustainable, scalable interventions that produce tangible impact.
Senator Aurangzeb called for the swift finalisation of the framework and the establishment of task forces to align with fund activities. A detailed update on the governance model, fund structure, and priority projects is expected by early May, as Pakistan seeks to position itself to attract innovative capital for inclusive and sustainable growth.
