ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has sent the draft Venture Capital Bill to the Board of Investment (BOI) for public consultation.
The proposed law aims to attract local and foreign investment into startups and technology companies.
It also seeks to improve access to venture capital, support new businesses and create more jobs in Pakistan.
Bill Aims to Strengthen Startup Ecosystem
Pakistan has strong potential in startups, technology and innovation. However, many young entrepreneurs still struggle to access formal venture capital.
High-growth startups often depend on overseas investors. Some also raise funds through channels outside Pakistan’s regulatory system.
The federal government asked the SECP and BOI to develop a framework for venture capital. The goal is to improve financing options for startups and fast-growing technology companies.
Proposed Framework for Venture Capital
The draft Bill proposes a simple and transparent regulatory system for venture capital funds and fund managers.
It includes easier licensing and registration procedures. It also proposes simpler operating structures and clear governance and reporting rules.
The new framework could bring more venture capital activity into Pakistan’s formal financial system.
It could also create a better environment for investment in innovative and high-growth businesses.
SECP Highlights Investor Protection
SECP Chairman Dr. Kabir Ahmed Sidhu said the proposed law would help channel private capital into emerging Pakistani businesses.
He said the Bill aims to reduce unnecessary regulatory barriers. At the same time, it would maintain strong governance and investor protection.
According to Sidhu, the framework also recognizes the high-risk and innovation-driven nature of venture capital investment.
Stakeholder Consultation Planned
The SECP and BOI will now consult key stakeholders on the draft legislation.
The consultations will include startups, venture capital fund managers, legal and financial experts, the State Bank of Pakistan and the Pakistan Stock Exchange.
Relevant business and industry associations will also take part in the consultation process.
After completing the consultations, the SECP and BOI will submit the draft Bill to the federal government for further legislative action.
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