The government has started work on a National Private Equity Policy Framework aimed at attracting greater domestic and foreign investment into Pakistani businesses and supporting long-term economic growth.
Finance Minister Muhammad Aurangzeb chaired the first meeting of the committee formed by the Prime Minister to develop the framework. The initiative seeks to strengthen Pakistan’s private equity market and make it easier for businesses to expand, restructure, merge and scale up.
The committee noted that private equity could help direct long-term capital toward high-growth and priority sectors. Increased investment could support business expansion, improve productivity and enhance the competitiveness of Pakistani companies.
The proposed framework will also explore opportunities in mergers and acquisitions, corporate restructuring, privatization and other areas requiring long-term investment.
Finance Minister Muhammad Aurangzeb emphasized that the policy should be private-sector-led, with the government focusing on establishing a clear regulatory environment and removing taxation and policy barriers that discourage long-term investment.
The government does not plan to provide direct funding under the proposed framework. Instead, it aims to create conditions that make Pakistan more attractive to domestic and international investors.
The committee also highlighted the need for a stronger pipeline of bankable business plans and investable projects. This would help investors identify viable opportunities and deploy capital more efficiently.
Four dedicated workstreams have been established to develop recommendations covering taxation, regulation, business strategy and bankable projects.
Their recommendations will be consolidated into the National Private Equity Policy Framework before being submitted to the Prime Minister for consideration.
The initiative is expected to provide a broader policy structure for private equity investment and encourage more long-term capital to flow into Pakistani businesses.
