New private equity policy framework on the horizon to bring over $10bn in investments
ISLAMABAD: The government is set to roll out a new private equity policy framework covering enhanced risk portfolios, targeting $10 to $15 billion in tax-neutral investment from domestic and international players in the private equity market. The government aims to finalise the policy framework within the next two weeks, which would entail policy actions to be introduced through the finance bill…
The Pakistani government is preparing to introduce a new private equity policy framework aimed at attracting over $10 billion in tax-neutral investments from both domestic and international players. This framework, based on successful models from the UK, Middle East, and India, is expected to finalize within two weeks and will be implemented through the finance bill for the upcoming fiscal year (FY27-28).
Immediate regulatory actions will follow without waiting for the next budget. The framework seeks to leverage Pakistan's potential as a market for private equity investments, which could reach $100-150 billion, driven by opportunities in acquisitions, business consolidation, new projects, and exits by existing investors. The meeting of the prime minister's committee reviewing the framework discussed the potential of Pakistan’s private equity market, the mobilization of domestic institutional capital, and potential participation from local corporations and family offices.
Enhancements to regulatory frameworks, such as increased permissible investment limits for banks in private equity funds, have already boosted portfolio sizes. Taxation discussions focused on creating a clear, competitive, and predictable tax framework for private equity funds, potentially treating them as pass-through vehicles for taxation at the investor level.
The finance minister emphasized the importance of a transparent and investor-friendly framework to mobilize domestic savings, attract institutional investment, and support private-sector-led economic growth.
Written by urgent.news from Dawn Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
