The Securities and Exchange Commission of Pakistan (SECP) has sent a draft venture capital bill to the Board of Investment (BOI) for public consultation. The proposed law aims to attract local and foreign investment into startups and technology companies. It also seeks to support new businesses and create more employment opportunities.
Pakistan has strong potential in startups, technology, and innovation. However, young businesses still face limited access to formal venture capital within the country. Many high-growth startups turn to overseas investors or funding channels outside Pakistan’s regulatory system. The government now wants to bring more of this investment into the formal financial sector.
The federal government previously directed the SECP and BOI to develop a regulatory framework for venture capital. The proposed bill is part of that effort to improve funding access for startups. The draft proposes a simpler framework for venture capital funds and fund managers. It also includes easier licensing and registration requirements for market participants.
The proposed rules would set clear governance and reporting requirements for venture capital activities. These measures could make it easier for investors and fund managers to operate within Pakistan.
SECP Chairman Dr. Kabir Ahmed Sidhu said the bill could help direct private capital toward emerging businesses. He said the framework aims to reduce regulatory hurdles while maintaining investor protection.
The proposed rules also consider the higher risks linked to venture capital investments. At the same time, they aim to support businesses driven by technology, innovation, and growth. The SECP and BOI will now consult startups, fund managers, and legal and financial experts. The State Bank of Pakistan, Pakistan Stock Exchange, and business groups will also take part.
After the consultation process, the draft bill will be sent to the federal government. It will then move forward for further legislative action.
