Pakistan has emerged as a key investment destination for British International Investment, the UK’s development finance institution, which is planning to expand its presence in the country as part of a broader strategy to invest at least 2 billion dollars across Asia and Africa between 2026 and 2031. BII Managing Director and Head of Asia Srini Nagarajan discussed the institution’s investment plans with Finance Minister Muhammad Aurangzeb during a meeting in Islamabad on September 10, with the conversation centered on increasing BII’s investment in Pakistan and drawing more private capital into infrastructure, climate finance, private equity, SME financing, and financial services.
Nagarajan described Pakistan as an important investment destination and said BII was interested in significantly growing its investment footprint in the country over the coming years. The institution pointed to opportunities across renewable energy, power transmission, infrastructure, technology, private credit, and private equity, saying it could draw on its experience to help structure financing arrangements and attract additional private investment into these sectors. The two sides also discussed fund-of-funds structures and private credit as potential tools to build up Pakistan’s investment ecosystem and widen access to long-term financing for local businesses and projects.
On his part, Finance Minister Aurangzeb highlighted improvements in Pakistan’s macroeconomic stability and investor confidence, pointing to ongoing reforms, privatization efforts, and steps taken to increase private-sector participation in the economy. He referenced Pakistan’s 3 billion dollar international bond issuance, progress on privatization, and improvements in the country’s sovereign credit ratings as signs of growing investor confidence. The meeting also touched on reforms in taxation, energy, tariff policy, capital markets, and digitalization, with the government briefing BII on its five-year tariff rationalization program aimed at improving industrial competitiveness. Officials additionally discussed new capital market instruments for infrastructure financing and ways suitable real estate assets could be used to attract further investment.
Aurangzeb also outlined government work on a National Private Equity Policy Framework and efforts to expand financing for SMEs, agriculture, and other underserved sectors through private credit, risk-sharing mechanisms, and digital platforms. BII expressed confidence in Pakistan’s economic outlook and reaffirmed its interest in increasing investment in the country, with both sides agreeing to continue discussions on specific investment opportunities, knowledge sharing, and ways to draw more private capital into Pakistan. No specific figures, sectors, or timelines were confirmed for BII’s planned expansion in the country, though officials from both sides described the meeting as a step toward deepening the relationship between BII and Pakistan’s financial and investment sectors.
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