Govt pushes private equity framework to unlock long-term capital

Mettis Global reported that Pakistan has sped up work on a National Private Equity Policy Framework, aimed at strengthening the private equity ecosystem and drawing more domestic and foreign long-term funds into productive investment. Finance Minister Senator Muhammad Aurangzeb chaired the committee's second meeting on September 3, where officials reviewed progress across regulatory, tax, institutional investment and legal workstreams. The panel also welcomed the successful $3 billion dual-tranche Eurobond issue, which drew broad participation from overseas investors.

Aurangzeb said the response from global markets signalled growing confidence in the economic direction and an encouraging setting for deeper equity markets. The State Bank of Pakistan is considering measures covering investment, repatriation and exit routes for institutional participants, while accounting treatment under banking and IFRS rules was also discussed. Members highlighted tax neutrality for pooled structures, so that pooling does not add an extra tax layer, with tax applying to those who ultimately earn the income.

Aurangzeb stressed that the framework should channel genuine capital rather than simply create new financial structures, and he urged a credible local setup that draws in domestic and foreign investors. He also called for moving from policy formulation to implementation through a clear, sequenced plan. The committee agreed to keep its regulatory, tax and legal workstreams closely coordinated before presenting further recommendations.