National Private Equity Framework: Pakistan Aims for $10–15 Billion Investment
Pakistan’s National Private Equity Framework aims to attract $10–15 billion. SBP raised bank limits in PE funds to 20%. Tax reforms and what it means.
Pakistan is preparing a National Private Equity Framework to mobilise domestic and foreign capital into businesses, with the State Bank of Pakistan (SBP) already raising the limit on how much a bank can invest in a single private equity fund from 10% to 20%. Finance Minister Muhammad Aurangzeb chaired the committee’s third meeting on 26 October 2026, where tax and regulatory reforms were reviewed. Media reports say the framework aims to attract $10 billion to $15 billion in investment.
National Private Equity Framework: key points
| Area | What was discussed or decided |
|---|---|
| Bank investment limit | SBP raised the limit for banks in a single private equity fund from 10% to 20% |
| Tax | Proposal to treat private equity funds as pass-through vehicles, taxed at investor level |
| Domestic capital | Channel money from banks, insurers, mutual funds, pension schemes, DFIs, corporates and family offices |
| Investment pipeline | Acquisitions, consolidation, new projects and exits over the next 5–10 years |
| Investment target | $10–15 billion (media reports; not stated in the official release) |
Sources: Finance Division / APP (26 October 2026); target as reported in the media on 28 October 2026.
How the National Private Equity Framework came about
- 3 September 2026: second committee meeting; SBP, SECP and FBR set up tax, regulatory and legal work streams, and the minister said the framework should “mobilize actual capital and translate it into investment outcomes”.
- 23 October 2026: SBP issued new limits on bank investments, including 20% of a fund’s units for mutual funds, REITs and private equity funds (BPRD Circular Letter No. 22 of 2026).
- 26 October 2026: third meeting reviewed tax and regulatory reforms; the minister said “mobilizing domestic capital should be the immediate priority”.
What is private equity, and why does it matter?
Private equity funds pool money from investors to buy stakes in private companies, help them grow and later sell their stake. In Pakistan, such funds are small, partly because of unclear tax rules and limits on how much banks and insurers can invest. Clear rules on entry, tax and exit could bring long-term money into sectors such as minerals, agriculture, real estate, manufacturing and tourism, creating jobs without adding to government debt.
What it means for businesses
Mid-sized Pakistani companies that cannot list on the stock exchange may find it easier to raise growth capital from private equity funds. For banks and pension funds, the higher 20% limit allows larger stakes in a single fund.
Frequently asked questions
Has the private equity policy been approved?
Not yet. The committee is finalising the framework; tax measures may come through a future Finance Bill.
What did SBP change for private equity?
It raised the permissible bank investment in a single private equity fund from 10% to 20%.
Related: SBP caps bank investment in startups · SBP reserves · Business news
Sources: APP: Aurangzeb chairs meeting on National Private Equity Framework (26 October 2026); PID (3 September 2026); SBP circular; investment target as reported by ProPakistani. Featured image: AI-generated illustration, for representation only.
