Pakistan Moves to Revise Venture Capital Bill After Regulatory Review

The federal government has instructed 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, according to a report by ProPakistani. The directive emerged from the 16th meeting of the Cabinet Committee on Regulatory Reforms (CCoRR), which reviewed the regulatory framework governing Pakistan's venture capital industry.

The committee identified several obstacles discouraging investment in the sector, including ambiguity over licensing requirements, heavy taxation and complications in transferring foreign investors' funds out of the country. It also flagged double taxation at both the venture capital fund level and the investor level as a significant concern.

To address these issues, SIFC and SECP have been asked to jointly review the proposed legislation and engage with relevant industry stakeholders before finalising a revised draft. The updated bill is expected to be presented at the committee's next meeting for further consideration.

Separately, the committee reviewed progress on seven previously approved regulatory reform packages. It directed SIFC to coordinate with the relevant regulatory authorities and ensure that pending reforms are completed within the prescribed timelines. The moves signal a broader push to streamline regulations and improve the investment climate for venture capital and startup financing in Pakistan.