Pakistan sets stage for private equity boom

August 20, 2026 (MLN): Pakistan has launched work on a National Private Equity Policy Framework aimed at unlocking greater domestic and international long-term capital, with the government planning regulatory and tax reforms to strengthen the country’s private equity ecosystem.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the first meeting of the committee constituted by the Prime Minister to develop the framework, where the committee agreed to establish four dedicated workstreams covering taxation, regulatory framework, business strategy and identification of bankable business plans.

The government will focus on creating an enabling environment for private equity rather than providing direct funding, with the framework to be private-sector-led, according to the Finance Division.

The committee discussed measures to remove policy and taxation constraints that may discourage long-term investment, including appropriate tax treatment of private equity funds as investment vehicles and greater flexibility for the reinvestment of capital.

The proposed framework is also expected to facilitate institutional investors in mobilizing long-term funds through professionally managed private equity vehicles, while maintaining regulatory safeguards and alignment with international standards.

The committee identified private equity as a potential source of growth capital for emerging and priority sectors, with investments expected to support business expansion, scaling of enterprises, productivity gains and improved competitiveness.

Private equity could also play a role in mergers and acquisitions, corporate restructuring, privatization and other long-term investment opportunities, the meeting noted.

Senator Muhammad Aurangzeb stressed the need for a clear pipeline of bankable business plans and investable projects to provide visibility to investors and enable effective deployment of capital.

The four workstreams will develop focused recommendations, which will subsequently be consolidated into the National Private Equity Policy Framework for submission to the Prime Minister.

The committee includes representatives from the public and private sectors and was attended by Minister of State for Finance Bilal Azhar Kayani and Advisor to the Prime Minister for Industries and Production Haroon Akhtar Khan, among other members.

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