‘Skills impact bond’ to be rolled out soon: Aurangzeb

TAHIR AMIN

ISLAMABAD: Federal Minister for Finance and Revenue, Muhammad Aurangzeb, on Wednesday said Pakistan would soon launch its first ‘Skills Impact Bond’ to advance skill development and move towards sustainable social sector financing.

Addressing the launch and award ceremony of the Corporate Philanthropy Report 2024 organized by the Pakistan Centre for Philanthropy (PCP), the minister announced that Pakistan’s first Skills Impact Bond—developed in partnership with the British Asian Trust and implemented through NAVTTC—would soon be launched. The bond is aimed at advancing skills development and moving towards sustainable social-sector financing through capital-market instruments rather than traditional funding channels.

He said corporate philanthropy can be doubled from the current Rs25 billion by adopting best practices. The minister offered incentives and support for this humanitarian initiative.

Aurangzeb highlighted the centrality of compassion, shared prosperity, and national responsibility to Pakistan’s “moral economy,” stressing that philanthropy, both individual and corporate, continues to be a defining feature of the nation’s identity.

The minister stated that he was frequently being asked about economic recovery, macroeconomic stabilization, and the roadmap for structural reforms aimed at achieving inclusive and sustainable growth. He emphasized that while these issues remain critical, it was equally important to participate in a ceremony that celebrates Pakistan’s philanthropic spirit and the collective commitment to social welfare.

He remarked that Pakistan is regarded globally as a remarkably giving nation, with the World Giving Index placing it 17th among 101 countries which is an acknowledgment of the country’s deeply ingrained culture of generosity, especially in the health and education sectors.

Reflecting on his years living and working in Karachi, the Minister observed that the city has long led the country in philanthropic activity and corporate giving. He stated that Karachi would rank among the top globally if international city-wise comparisons of philanthropy were conducted. He appreciated that while other regions of the country are increasingly contributing, Karachi’s leadership remains noteworthy and exemplary.

Aurangzeb also commended the resilience of corporate philanthropy in Pakistan, noting that despite economic fluctuations and business cycles, corporate giving has consistently trended upward. He referred to recent data indicating that out of more than 400 publicly listed companies, over 300 engage in corporate social responsibility (CSR) initiatives, and about one-third formally disclose their contributions.

He urged companies that have not yet disclosed their philanthropic work to do so, reminding them that transparency benefits both society and the spirit of giving itself. He emphasized that declarations of corporate giving support role-modeling and encourage wider participation, without the need for legislation or directives, which he believes should remain a last resort.

The Minister recalled leading an organization where 1% of annual profitability was consistently directed toward a corporate foundation, later increased to 1.5% by the board. He praised the award-winning companies as champions setting the standard for others. Their commitment to social investment, he said, strengthens Pakistan’s social development foundations and reflects the country’s collective values.

He acknowledged the PCP’s vital role in creating transparency, credibility, and structured certification processes that enhance the overall effectiveness of the philanthropic ecosystem. He encouraged the Centre to continue improving efficiencies across all stages of certification and evaluation, ensuring that processes remain timely and robust.

Aurangzeb also linked the work of PCP to broader governmental efforts aimed at strengthening the social sector through innovative financing. Highlighting his role in leading the Prime Minister’s initiative on the Social Impact Financing Framework, he explained that the government is shifting from generalized spending toward results-based, impact-linked financing. The framework brings together public, private, and philanthropic capital to achieve measurable outcomes.

Aurangzeb reaffirmed the government’s commitment to supporting PCP in fostering a strong culture of giving in Pakistan. He assured the audience that the government remains fully committed to exploring incentives and facilitating frameworks that encourage responsible and purposeful giving. He expressed appreciation for the invitation and extended best wishes to the Pakistan Centre for Philanthropy for its continued efforts in the coming year.

Aurangzeb praised the corporate sector for sustaining its social contributions despite economic instability, saying business leaders continue to play a “progressive and vital role” in national development. He noted, “Corporate philanthropy is no longer a peripheral activity; it has become a meaningful pillar of Pakistan’s development agenda. This generosity forms part of the moral economy of our country. Even in periods of fiscal pressure and shifting economic cycles, corporate giving has remained on an upward path, showing how responsibly the business community continues to support national progress. The award winners today are leading the way, and their contributions reflect a culture that values human development, social protection, and wider opportunity.”

The minister further acknowledged the integrity of the Pakistan Centre for Philanthropy and its role in promoting a structured culture of giving nationwide. He encouraged organisations that donate quietly to share their contributions more openly, noting that visibility builds confidence across the ecosystem and reduces the need for directive measures when the corporate sector chooses to lead voluntarily.

Corporate giving in Pakistan reached a record Rs 25.44 billion in 2023, according to the latest Corporate Philanthropy Report released by the Pakistan Centre for Philanthropy (PCP).

The PCP shared that public listed companies led donations with Rs 18.23 billion, followed by Public Unlisted Companies (Rs 3.28 billion) and Private Limited Companies (Rs 3.93billion). Companies listed on the KSE-100 Index donated Rs 15.24 billion, while KSE-30 firms gave Rs 8.80 billion, reflecting strong alignment with national priorities. The Glass & Ceramics sector recorded the highest giving ratio, contributing 7.80% of total profits.

A total of 18 leading companies were honored for high-volume donations and strong giving relative to profits. Award recipients included OGDCL, Mari Energies, Bank Alfalah, Yunus Textile Mills, Novatex, Fast Cables, Barrett Hodgson, US Denim Mills, KSB Pumps, Unity Foods, Searle, Y.B. Pakistan, Ghani Ceramics, among others.

The event also featured a panel discussion titled “Philanthropy Ecosystem in Pakistan: Opportunities and Challenges,” chaired by Badaruddin F Vellani, with participation from Mehnaz Akbar Aziz, Ahmer Bilal Soofi, Asif Rasool, Dr. Faisal Sultan, and Zia Akhter Abbas. The panel examined policy gaps, taxation issues, and the need for stronger regulatory support to expand organized giving.

PCP Chairman Zaffar A Khan reaffirmed the importance of corporate philanthropy in complementing public-sector development efforts, noting that the 20th edition of the survey reflects the private sector’s sustained commitment to social progress.