BII eyes major expansion of investment footprint in Pakistan

September 10, 2026 (MLN): British International Investment (BII) is looking to significantly expand its investment footprint in Pakistan and mobilize greater private capital across infrastructure, climate finance, financial services, technology, SMEs and private markets.

This was discussed during a meeting between Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb and BII Managing Director and Head of Asia Mr. Srini Nagarajan.

Mr. Srini Nagarajan briefed the Finance Minister on BII’s 2026–31 strategy, under which the institution plans to invest at least $2bn across Asia and Africa, with a strong focus on South Asia and frontier markets.

He identified Pakistan as an important investment destination and expressed interest in scaling up BII’s presence in the country.

The discussions covered private capital mobilization, infrastructure and climate finance, private equity, SME financing and emerging investment opportunities linked to Pakistan’s economic and structural reforms.

BII also highlighted potential investments in renewable energy, power transmission and other infrastructure projects, while expressing readiness to contribute international expertise to develop viable financing structures and attract additional private investors.

The delegation also discussed private equity, fund-of-funds structures and private credit as avenues to strengthen Pakistan’s domestic investment ecosystem. BII welcomed reforms in the capital markets and efforts to improve the investment and exit environment.

Senator Muhammad Aurangzeb highlighted improvements in macroeconomic stability and investor confidence, along with the Government’s focus on structural reforms, privatization and private-sector-led growth.

He pointed to Pakistan’s successful $3bn international bond issuance, progress on privatization and improvements in sovereign credit ratings as signs of strengthening investor confidence and renewed engagement with international capital markets.

The Finance Minister also briefed BII on reforms in taxation, energy, tariff policy, capital markets and digitalization, including the Government’s five-year tariff rationalization programme aimed at improving industrial competitiveness.

The meeting further explored new capital-market instruments for infrastructure financing and innovative investment mechanisms, including the potential tokenization of suitable existing real estate assets.

Senator Muhammad Aurangzeb also outlined the Government’s work on a National Private Equity Policy Framework, aimed at developing Pakistan’s private equity ecosystem, strengthening domestic fund-management capacity and attracting long-term local and foreign capital.

The discussion also covered the Government’s Access to Finance agenda, with a focus on expanding funding for SMEs, agriculture and underserved segments through private credit, risk-sharing mechanisms, digital platforms and stronger financial infrastructure.

BII reaffirmed its commitment to Pakistan and expressed confidence in the country’s economic prospects, while the Finance Minister encouraged timely consideration of investment proposals and progress towards concrete transactions.

Both sides agreed to maintain close engagement and explore actionable opportunities for investment, knowledge sharing and private capital mobilization across Pakistan’s priority sectors.

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