SECP advances Venture Capital Bill to expand startup investment

August 24, 2026 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has shared the draft Venture Capital (VC) Bill with the Board of Investment (BOI) for public consultation.

The proposed legislation aims to improve access to risk capital, attract domestic and foreign investment, support startup growth, create employment opportunities and contribute to economic growth.

The Bill has been prepared under a Federal Government initiative that tasked the SECP with developing a standalone regulatory framework for venture capital and improving funding access for startups and high-growth businesses.

Pakistan’s startup, technology and innovation sectors have significant potential but continue to face limited access to formal venture capital, with a substantial portion of investment activity structured offshore or outside the domestic regulatory framework.

The proposed law seeks to bridge this gap by establishing a simple and transparent framework for venture capital funds and fund managers.

It proposes light-touch licensing and registration requirements, simplified operational structures, and clear governance and reporting standards to facilitate the formalization of venture capital activity in Pakistan.

SECP Chairman Dr. Kabir Ahmed Sidhu said the proposed law would help channel private capital into emerging businesses in Pakistan.

He said the Bill recognizes the high-risk and innovation-driven nature of venture capital and seeks to reduce regulatory barriers while ensuring effective governance and investor protection.

As the next step, the SECP and BOI will conduct public consultations with key stakeholders, including startups, fund managers, legal and financial experts, the State Bank of Pakistan, Pakistan Stock Exchange and relevant industry associations.

Following the consultation process, the draft will proceed through the legislative process.

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