The Cabinet Committee on Regulatory Reforms (CCoRR), in its 16th meeting reviewed Pakistan’s regulatory framework governing Venture Capital (VC), with a particular focus on facilitating investment, improving the ease of doing business and creating a more conducive environment for the growth of the venture capital industry.
The Committee examined the draft Venture Capital Bill prepared by the Securities and Exchange Commission of Pakistan (SECP) in pursuance of its earlier directions. The deliberations focused on identifying regulatory and operational challenges affecting the development of the venture capital ecosystem and exploring appropriate reforms to encourage greater participation by domestic and international investors.
During the review, the Committee identified three key areas requiring attention to facilitate the growth of the sector. These included regulatory uncertainty and compliance burdens associated with the existing licensing framework, high taxation rates, including double taxation at the fund and investor levels, and foreign exchange repatriation requirements that may discourage international venture capital managers and investors from operating in Pakistan.
Recognising the importance of a facilitative regulatory framework for venture capital investment, the Committee directed the Special Investment Facilitation Council (SIFC) and SECP to jointly undertake a detailed review of the draft Venture Capital Bill. The exercise will include consultations with private-sector representatives and relevant industry stakeholders to incorporate practical considerations and develop a more facilitative and investment-friendly legislative framework.
The revised draft Bill will be presented before the next meeting of the CCoRR for further consideration. The initiative reflects the Committee’s focus on addressing regulatory bottlenecks through coordinated institutional efforts and stakeholder engagement, while providing a conducive environment for investment in emerging and growth-oriented businesses.
The Committee also reviewed progress on the broader regulatory reform agenda covering seven endorsed reform packages. Emphasising the importance of timely implementation, it directed SIFC to engage and sensitise all concerned regulatory authorities regarding their outstanding reform commitments and ensure implementation within the prescribed timelines.
