Islamabad: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, presided over the second meeting of the Committee tasked with developing a National Private Equity Policy Framework. The initiative aims to fortify Pakistan’s private equity ecosystem and attract both domestic and international long-term capital for productive investments.
According to Press Information Department, the Committee commenced by acknowledging Pakistan’s successful issuance of a US$3 billion dual-tranche Eurobond, highlighting the strong participation of international investors. Senator Aurangzeb noted that the positive reception from global capital markets signals growing confidence in Pakistan’s economic trajectory and sets an encouraging tone for enhancing the equity side of the capital market.
The meeting reviewed progress across various work streams, including regulatory, taxation, and institutional investment areas, established after the Committee’s initial meeting. The Finance Minister underscored the importance of translating these into a coherent framework that mobilizes actual investment while maintaining regulatory safeguards and fiscal discipline.
Discussions also focused on regulatory measures under consideration by the State Bank of Pakistan to facilitate institutional participation and ensure compliance with prudential and accounting standards. The Committee emphasized tax neutrality for private equity structures to avoid additional taxation layers and discussed ways to prevent tax arbitrage while facilitating genuine investment.
Further, the meeting examined the tax treatment of capital gains in private-company transactions, stressing the need for transparent valuation mechanisms. The Securities and Exchange Commission of Pakistan’s ongoing work to develop a legal and regulatory framework for private equity was also reviewed.
Senator Aurangzeb highlighted private equity as a vital asset class for channeling long-term capital into businesses, supporting entrepreneurship, and providing investment avenues. He emphasized the necessity of creating a credible domestic ecosystem to attract both local and international investors and connect them with investment opportunities in Pakistan.
The Committee agreed to continue coordinating the regulatory, taxation, and legal work streams and consolidate their recommendations into a coherent national framework. Institutions were urged to advance their technical work to resolve outstanding issues, with recommendations to be revisited in future meetings.
The Finance Minister stressed moving from policy design to implementation, aiming for a competitive, transparent, and well-regulated private equity environment that broadens Pakistan’s financing landscape and supports economic activity.
The meeting concluded with consensus on advancing priority recommendations and working towards a comprehensive National Private Equity Policy Framework, ensuring safeguards against misuse while fostering sustainable growth in Pakistan’s private equity market. The meeting included key advisors and ministers from relevant sectors.