Finance Minister Seeks Real Investment After Historic Eurobond Sale

Pakistan's Finance Minister Muhammad Aurangzeb emphasized the need to convert the nation's successful $3 billion Eurobond issuance into real investment and to attract more long-term private capital. This came during a second meeting of the committee tasked with developing a National Private Equity Policy Framework, following the record capital raise.

Aurangzeb highlighted that the positive response from global investors demonstrated increasing confidence in Pakistan's economic trajectory, providing an opportunity to deepen the equity side of the capital market and diversify long-term financing sources. The Finance Minister pointed out that dedicated workstreams had been established to address regulatory, taxation, institutional investment, and other policy aspects following the first committee meeting.

The committee reviewed various workstreams, including regulatory measures by the State Bank of Pakistan, accounting treatment of private equity investments under banking and IFRS requirements, and tax neutrality for private equity structures. They also discussed the importance of transparent valuation mechanisms and the expansion of the domestic institutional investor base.

Aurangzeb stressed that the framework should aim to mobilize actual capital and translate it into real investment outcomes, rather than merely creating additional financial structures. The committee agreed to continue coordination among regulatory, taxation, and legal workstreams and consolidate their recommendations into a comprehensive national framework, moving from policy design towards implementation.