Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Wednesday chaired the first meeting of a committee formed by the prime minister to develop a National Private Equity Policy Framework.
The initiative aims to strengthen Pakistan's private equity market and attract greater domestic and international long-term investment.
What is Pakistan's National Private Equity Policy Framework?
The framework is designed to channel growth capital into emerging and priority sectors through private equity. It aims to support business expansion, improve productivity and strengthen the competitiveness of Pakistani companies by encouraging private-sector-led investment rather than direct government funding.
Aurangzeb said the proposed framework should be private-sector-led, with the government focused on creating an enabling environment. He added that the government's role would centre on providing regulatory clarity and addressing taxation and policy barriers that could constrain the flow of long-term capital.
What did the committee discuss in its first meeting?
The committee reviewed Pakistan's existing private equity ecosystem and discussed measures to establish a supportive taxation and regulatory regime. This included appropriate treatment of private equity funds as investment vehicles and greater flexibility for long-term investment and reinvestment.
Members also discussed the role of institutional investors in mobilising long-term capital through professionally managed private equity funds, while maintaining regulatory safeguards aligned with international standards. They highlighted the potential role of private equity in mergers and acquisitions, business restructuring, privatisation and other long-term investment opportunities.
What workstreams has the committee established?
The committee agreed to set up four workstreams focusing on taxation, regulatory framework, business strategy and the identification of bankable business plans. Their recommendations will be consolidated into the National Private Equity Policy Framework and submitted to the prime minister for consideration.
The finance minister stressed the need to develop a clear pipeline of bankable business plans and investable projects. He said this would give investors greater visibility and facilitate the effective deployment of capital.
Who attended the committee meeting?
Aurangzeb called for focused and actionable recommendations aimed at unlocking long-term capital, encouraging private-sector investment and supporting sustainable and inclusive economic growth.
The meeting was attended by Minister of State for Finance Bilal Azhar Kayani and Adviser to the Prime Minister on Industries and Production Haroon Akhtar Khan, along with other committee members from the public and private sectors.
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