Pakistan plans new private equity framework to attract up to $15 billion in investment

Pakistan’s government aims to put a private-equity policy in place within two weeks, with a stated goal of drawing $10 billion to $15 billion from local and overseas investors. Profit reported that the plan is intended to widen access to long-term risk capital, with regulatory revisions expected once the policy is finalised and tax provisions slated for the Finance Bill for fiscal year 2027-28.

Finance Minister Muhammad Aurangzeb’s committee considered ways to channel funds from banks, insurers, mutual funds, pension schemes and other institutions into acquisitions, business combinations and new ventures over the next five to 10 years. The State Bank of Pakistan proposed raising banks’ ceiling for investment in one private-equity fund from 10% to 20%; members also discussed taxing fund investors directly instead of taxing the funds. Officials cited expanded bank exposure limits for real estate investment trusts as a precedent, noting their portfolio rose from Rs22 billion in 2021 to more than Rs280 billion.