The government is moving to introduce a Private Equity Fund as part of a broader push to diversify financing sources, strengthen capital markets and accelerate private sector led economic growth. Chairing a meeting on private investment and long term economic development, Prime Minister Shehbaz Sharif directed officials to swiftly prepare a roadmap for establishing the proposed fund, alongside a comprehensive strategy for expanding Pakistan’s public equity market, treating the two initiatives as closely connected components of the same capital markets agenda.
Shehbaz Sharif said improving access to investment capital was essential for sustaining economic growth and attracting foreign investment, adding that stronger capital markets could give businesses financing options beyond the traditional banking system. This framing places private equity and a more developed public equity market alongside conventional bank lending as complementary channels the government wants to actively build out, rather than leaving businesses reliant on a single source of financing.
The prime minister noted that investment by commercial banks had remained limited relative to the country’s financing needs, stressing the importance of developing alternative channels capable of meeting growing demand for capital across different sectors. According to Shehbaz Sharif, private equity funds can help mobilise capital, support business expansion and create employment opportunities, with a particular emphasis on small and medium sized enterprises, which often face the greatest difficulty accessing financing through conventional banking channels.
Shehbaz identified minerals, agriculture, livestock, energy, information technology and other industries as sectors capable of driving future economic growth, saying a more developed public equity market could help direct investment toward these areas. This sector specific framing suggests the government sees capital market development not simply as a financial sector reform, but as a tool for channelling investment into industries it views as central to the country’s longer term economic trajectory.
Reiterating the government’s broader economic strategy, the prime minister said current efforts remain centred on encouraging private investment, expanding industrial activity and boosting exports to build a stronger and more sustainable economy. With officials now tasked with preparing a roadmap for both the Private Equity Fund and the wider public equity market, the coming months are expected to bring greater clarity on how these initiatives will be structured and implemented.
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