Islamabad (GNP): Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, led the first meeting of a committee set up by the Prime Minister to draft a National Private Equity Policy Framework, intended to strengthen Pakistan’s private equity sector and attract more long-term capital from both domestic and international sources.
Participants discussed how private equity can drive long-term investment and capital formation to support sustainable economic growth, noting its potential to direct funding toward priority and emerging sectors, help businesses expand, build scale, boost productivity, and improve the competitiveness of Pakistani firms.
The Finance Minister said the framework should be driven primarily by the private sector, with government’s role focused on creating a supportive environment — offering regulatory clarity and addressing policy and tax barriers that could restrict long-term capital flows. He clarified that the goal isn’t direct government financing, but rather encouraging greater involvement from domestic and international investors.
The committee examined the current state of Pakistan’s private equity landscape and discussed ways to build a more supportive tax and regulatory system, including proper classification of private equity funds as investment vehicles and greater flexibility around long-term investment and capital reinvestment.
Discussion also touched on the role institutional investors could play in channeling long-term capital through professionally managed private equity funds, while keeping appropriate regulatory oversight in line with international norms. The committee explored how private equity could support mergers and acquisitions, corporate restructuring, privatization efforts, and other long-term investment opportunities, alongside its broader potential to drive investment in high-growth sectors and strengthen business competitiveness.
The Finance Minister stressed the need to build a clear pipeline of viable business plans and investable projects, which would give investors better visibility and help ensure capital is deployed effectively.
To move the work forward, the committee agreed to form four dedicated workstreams focused on taxation, regulatory matters, business strategy, and identifying bankable projects. Their combined findings will be compiled into the National Private Equity Policy Framework and submitted to the Prime Minister for review.
Senator Aurangzeb called for the committee’s recommendations to be focused, practical, and actionable, with the aim of unlocking long-term capital, encouraging private investment, and supporting inclusive, sustainable economic growth.
The meeting was also attended by Minister of State for Finance Bilal Azhar Kayani, Adviser to the Prime Minister for Industries and Production Haroon Akhtar Khan, and other committee members drawn from relevant public and private sector organizations.
Sohail Majeed is a Special Correspondent at The Diplomatic Insight. He has twelve plus years of experience in journalism & reporting. He covers International Affairs, Diplomacy, UN, Sports, Climate Change, Economy, Technology, and Health.
