Key Takeaways
- • The federal government has directed the Special Investment Facilitation Council (SIFC) and the Securities and Exchange Commission of Pakistan (SECP) to revise the draft Venture Capital Bill after consulting private-sector representatives.
- • The Cabinet Committee on Regulatory Reforms (CCoRR), at its 16th meeting, identified licensing uncertainty, high taxation, and difficulties repatriating foreign investors' funds as hurdles to venture capital investment in Pakistan.
- • Double taxation at both the venture capital fund and investor levels was flagged as a major concern.
- • The revised bill will return to the committee's next meeting for further consideration, with SIFC and SECP required to review it jointly and consult industry stakeholders first.
- • The committee also reviewed seven approved regulatory reform packages and directed SIFC to ensure pending reforms are implemented within prescribed timelines.
Summary
The federal government of Pakistan has instructed the Special Investment Facilitation Council (SIFC) and the Securities and Exchange Commission of Pakistan (SECP) to revise the draft Venture Capital Bill following consultations with private-sector representatives, according to ProPakistani. The directive was issued at the 16th meeting of the Cabinet Committee on Regulatory Reforms (CCoRR), which reviewed the regulatory framework governing the country's venture capital industry.
The committee identified several obstacles to investment in the sector. These include uncertainty over licensing requirements, high taxation, and difficulties in transferring foreign investors' funds out of Pakistan. Double taxation, applying at both the venture capital fund level and the investor level, was highlighted as a particular concern. Together, these issues bear directly on the attractiveness of Pakistan as a destination for foreign venture capital capital.
The committee directed SIFC and SECP to review the proposed legislation jointly and to consult relevant industry stakeholders before finalising a revised draft. The revised bill is scheduled to be presented at the committee's next meeting for further consideration. No specific timeline for that meeting was reported in the source article.
Separately, the committee reviewed progress on seven approved regulatory reform packages and instructed SIFC to contact relevant regulatory authorities to ensure pending reforms are implemented within their prescribed timelines. The source article does not provide deal values, fund sizes, or named individuals beyond the institutions involved.
The committee identified several obstacles to investment in the sector. These include uncertainty over licensing requirements, high taxation, and difficulties in transferring foreign investors' funds out of Pakistan. Double taxation, applying at both the venture capital fund level and the investor level, was highlighted as a particular concern. Together, these issues bear directly on the attractiveness of Pakistan as a destination for foreign venture capital capital.
The committee directed SIFC and SECP to review the proposed legislation jointly and to consult relevant industry stakeholders before finalising a revised draft. The revised bill is scheduled to be presented at the committee's next meeting for further consideration. No specific timeline for that meeting was reported in the source article.
Separately, the committee reviewed progress on seven approved regulatory reform packages and instructed SIFC to contact relevant regulatory authorities to ensure pending reforms are implemented within their prescribed timelines. The source article does not provide deal values, fund sizes, or named individuals beyond the institutions involved.
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