Islamabad: Minister for Finance Muhammad Aurangzeb has underscored the necessity of creating a transparent and investor-friendly framework to mobilize domestic savings, attract institutional investments, and support private-sector-led economic growth in Pakistan.

According to Radio Pakistan, Aurangzeb chaired a meeting in Islamabad focused on developing the National Private Equity Framework. The meeting assessed progress on regulatory and taxation reforms aimed at fostering a robust private equity ecosystem in the country.

The Committee evaluated the potential of Pakistan’s private equity market, considering opportunities from acquisitions, business consolidation, and new projects. The discussions highlighted the prospects of a significant pipeline of investable opportunities over the next five to ten years, supported by substantial domestic liquidity.

Aurangzeb emphasized the importance of mobilizing domestic capital as a foundation for a credible private equity market, capable of attracting foreign institutional investors and facilitating international co-investment.

The State Bank of Pakistan briefed the meeting on recent regulatory changes, including an increase in the permissible investment limit for banks in a single private equity fund from ten percent to twenty percent.

Taxation reforms were also reviewed, with recommendations for a clear and competitive tax framework for private equity funds. The Finance Minister stressed the importance of evaluating international taxation models and adapting them to suit Pakistan’s environment.

The Committee called for a coordinated approach across regulatory and taxation authorities to ensure consistency in investment vehicle treatment and facilitate the development of a well-functioning private equity market.

Aurangzeb directed stakeholders to continue addressing regulatory and taxation issues and to advance work on domestic capital mobilization. He reiterated that developing a robust private equity ecosystem is integral to fostering deeper domestic capital markets and sustainable economic growth.