The Securities and Exchange Commission of Pakistan (SECP) has submitted a draft Venture Capital Bill to the Board of Investment (BOI) for public consultation, proposing a new regulatory framework designed to attract greater local and foreign investment into Pakistani startups and technology companies. The proposed legislation aims to improve access to formal venture capital, support emerging businesses and create new employment opportunities.
The move comes as Pakistani startups continue to face limited access to domestic venture capital, with many high-growth companies seeking funding from overseas investors and channels outside the country’s formal regulatory system. The proposed framework seeks to bring more venture capital activity into the formal financial sector by establishing clearer rules for funds, fund managers and other market participants.
Under the draft legislation, the SECP has proposed a simplified framework covering the licensing and registration of venture capital funds and fund managers. The rules would also introduce clearer governance and reporting requirements, potentially making it easier for investors and fund managers to operate within Pakistan while maintaining appropriate regulatory oversight and investor protection.
SECP Chairman Dr. Kabir Ahmed Sidhu said the proposed framework could help channel private capital toward emerging businesses while reducing unnecessary regulatory hurdles. The framework also recognises the higher risks associated with venture capital investments and aims to support companies focused on technology, innovation and high-growth opportunities.
The SECP and BOI will now consult startups, venture capital fund managers, legal and financial experts and other stakeholders before finalising the proposal. The State Bank of Pakistan, Pakistan Stock Exchange and business groups are also expected to participate in the consultation process. Following the consultations, the draft bill will be submitted to the federal government for further legislative action.
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