Finance minister meets banks to review economic risks from regional developments

Federal Minister for Finance and Revenue Muhammad Aurangzeb held a virtual meeting on Wednesday with the Pakistan Banks’ Association and senior leadership of major banks to review the evolving economic and financial situation amid regional developments.

According to an official statement, the meeting focused on coordination between the government, the State Bank of Pakistan and the banking sector to maintain financial stability and ensure uninterrupted financial services.

The finance minister briefed participants on the government’s monitoring of the situation and the steps being taken to assess its potential economic impact. He said a high-level coordination mechanism involving key economic ministries and institutions had been established to review developments on a continuous basis.

The mechanism is examining changes in global markets, including supply chains and energy markets, and evaluating their possible effects on key macroeconomic indicators.

Aurangzeb said the government is conducting regular scenario analysis to assess possible implications for inflation, external accounts and overall economic stability.

He said authorities remain focused on ensuring the availability of essential supplies and maintaining macroeconomic stability while responding to changing conditions.

The finance minister also stressed the importance of coordination with the financial sector during periods of uncertainty and acknowledged the role of banks in supporting financial markets and economic activity.

He urged banks to continue supporting businesses and customers while maintaining risk management standards and operational resilience to ensure continuity of financial services.

Aurangzeb said the government would maintain close communication with the banking industry and continue working with the State Bank of Pakistan to respond to developments in a coordinated manner.

During the meeting, Pakistan Banks’ Association Chairman Zafar Masud briefed the minister on consultations held within the banking sector to review possible implications for financial markets and operational continuity.

He said banks had established a coordination framework to enable timely information sharing among financial institutions and to ensure uninterrupted services for customers and businesses.

Masud said the banking industry was also engaging with key stakeholders in the financial system to support the functioning of payment infrastructure and financial services.

He added that banks would remain in close coordination with the State Bank of Pakistan and other institutions while continuing internal consultations to monitor developments.

The PBA chairman also highlighted the importance of cooperation between the government, the central bank and the banking sector to maintain financial market stability and facilitate trade and financial flows.

Masud reaffirmed the banking sector’s commitment to working with regulators and government authorities to address emerging challenges.