Government Decides to Strengthen Domestic Private Equity System, Promote Long-Term Investment
ISLAMABAD: The committee, on the task of preparing the National Private Equity Policy Framework, held its first meeting with the Federal Minister for Finance and Revenue Muhammad Aurangzeb as chairman. The government has decided to boost private sector private equity in the country and incentivize long-term investments, said Muhammad Aurangzeb, adding that a private-sector private equity policy framework will be developed.
The Finance Minister said the government will have only a facilitative role and will only create a conducive environment and clear regulatory framework. He explained that the government will not be directly funding this, but rather ensuring maximum involvement of local and foreign investors. The participants discussed the ongoing efforts to eliminate tax and regulatory obstacles to long-term investments, and reviewed proposals for the formation of an effective tax and regulatory regime for private equity funds during the meeting. Sector Growth:
A consensus was reached to increase investment in emerging and priority sectors by private equity for better business growth, productiveness and competitiveness. Restructuring & Privatization: The possibility of private equity in restructuring and mergers processes and in privatization was studied. Project Pipeline: Emphasis was placed on making a clear list of workable business plans and investment opportunities, which will attract investors. In order to build on the developments of the committee, four dedicated working groups were established, covering the taxation, the regulatory framework, the business strategy and the bankable projects.
The recommendations will be collated into the National Private Equity Policy Framework by these groups and sent to the Prime Minister. The Finance Minister was convinced that the policy is aimed at encouraging long-term investment, private sector development and sustainable and inclusive economic growth.