Pakistan on Monday launched the InvestPak digital investment portal to broaden public access to government securities, as the government seeks to diversify its funding sources and gradually reduce its reliance on commercial banks to meet its financing needs.
Speaking at the launch ceremony, Federal Finance Minister Muhammad Aurangzeb said that the government aims to gradually reduce its reliance on commercial banks for financing by expanding access to government securities through digital investment platforms.
The central bank introduced Invest Pak as a digital investment platform designed to streamline and digitize the process of investing in government securities (bonds) for both individual and corporate investors.
The finance minister said broadening the investor base is a key objective of the government’s policy, alongside accelerating the country’s digital transformation.
He added that, from the government’s perspective, the primary goal is to diversify the investor base.
Aurangzeb said the government recently met with chief executive officers of commercial banks to discuss increasing lending to the private sector.
However, he stressed that the government’s heavy reliance on borrowing from commercial banks has long been a matter of concern.
“One question that always arises is whether the government is borrowing too much and whether that is crowding out private-sector lending. There may be some truth to that,” Aurangzeb said. “That is why the government wants to diversify the sources of financing for its fiscal needs and reduce its dependence on commercial banks.”
