Finance Minister Muhammad Aurangzeb leads committee meeting to develop a framework aimed at attracting domestic and international private equity capital.
Pakistan has taken a major step toward strengthening its private equity market as Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the first meeting of a committee tasked with preparing a National Private Equity Policy Framework.
The initiative, constituted on the directives of the Prime Minister, aims to create conditions that can attract greater volumes of domestic and international long-term investment into Pakistan’s economy.
During the meeting, the committee examined how private equity can contribute to capital formation and sustainable economic growth. Members highlighted its potential to provide growth funding to emerging and priority industries while helping businesses expand operations, improve productivity and achieve greater scale.
Finance Minister Muhammad Aurangzeb stressed that the proposed framework should be driven primarily by the private sector. He said the government’s role should focus on establishing a supportive environment through clear regulations, simplified processes and policies that address taxation and other barriers affecting long-term investment.
The minister clarified that the policy is not intended to involve direct government financing. Instead, its broader objective is to encourage domestic and international investors to participate more actively in Pakistan’s private sector.
The committee also reviewed the existing private equity landscape and considered changes to taxation and regulatory arrangements. Discussions included the appropriate treatment of private equity funds as investment vehicles and the need for greater flexibility in investing and reinvesting capital over the long term.
Institutional investors were also identified as an important source of long-term financing. The committee discussed ways to encourage professionally managed private equity funds while maintaining regulatory safeguards and ensuring consistency with international practices.
Private equity could also play a role in mergers and acquisitions, corporate restructuring, privatization and other long-term investment opportunities. To make the market more attractive, the committee emphasized developing a strong pipeline of bankable business proposals and investable projects.
Four dedicated workstreams will now focus on taxation, regulations, business strategy and identification of bankable projects. Their recommendations will be consolidated into the National Private Equity Policy Framework before being submitted to the Prime Minister.
The government expects the framework to help unlock long-term capital, strengthen private-sector investment and support sustainable and inclusive economic growth.