Aurangzeb says successful Eurobond launch reflects investors’ trust

Islamabad: Federal Finance Minister Senator Muhammad Aurangzeb convened the second meeting of the Committee tasked with creating a National Private Equity Policy Framework. The Committee commended Aurangzeb for Pakistan's successful USD 3 billion dual-tranche Eurobond issuance, praising the broad-based international investor participation.

Aurangzeb highlighted the positive market response as a testament to confidence in Pakistan's economic trajectory, signaling a favorable environment for deepening the country's equity market and expanding long-term financing sources. He outlined the Committee's progress across regulatory, taxation, and institutional investment policy areas, stressing the need to convert these efforts into an actionable framework that can mobilize genuine investments while preserving regulatory safeguards and fiscal discipline.

The Committee deliberated on the regulatory work stream, including State Bank of Pakistan's measures to boost institutional involvement, including investment, repatriation, and exit options. They also examined the tax neutrality of private equity structures, the need for tax requirements to apply at the investor level, and the importance of clear disclosure, registration, and anti-avoidance measures.

The Committee addressed the tax implications of capital gains in private-company transactions, emphasizing the necessity of transparent, credible valuation mechanisms and safeguards to prevent misuse. They reviewed the legal framework for private equity and venture capital, with discussions focusing on expanding the domestic investor base and establishing a regulatory framework that offers clarity and assurance to investors and fund managers.

Aurangzeb underscored the significance of a robust private equity sector in mobilizing patient, long-term capital, fostering business growth, and creating employment and productivity. He stressed that the framework should translate into real capital inflows that enhance investment outcomes. The Committee agreed to continue coordinating closely on regulatory, taxation, and legal matters, aiming to consolidate their recommendations into a comprehensive national framework.

They tasked relevant institutions with advancing their assessments and technical work to resolve outstanding issues and present recommendations for further consideration. Aurangzeb urged the group to move from policy design to implementation, emphasizing the goal of creating a competitive, transparent, and well-regulated private equity ecosystem that broadens Pakistan's financing landscape, complements existing financing sources, and drives sustainable economic development.

The meeting concluded with consensus to pursue the priority recommendations and advance the National Private Equity Policy Framework, aiming to establish a framework that is both secure and conducive to the market's growth.