The Securities and Exchange Commission of Pakistan sent the draft Venture Capital Bill to the Board of Investment for consultation, with the proposed legislation aimed at increasing investment opportunities for startups and technology companies across the country. According to a statement issued on Monday, the bill represents a formal step toward addressing what SECP has identified as limited formal access to venture capital for startups and technology companies operating within Pakistan.
According to SECP, the proposed law is intended to provide local startups with greater access to investment through venture capital, addressing a persistent gap that has continued to affect early stage companies seeking structured funding pathways. The commission noted that formal venture capital access has remained limited within Pakistan, creating a barrier for startups looking to scale beyond bootstrapped or informal funding sources.
The draft legislation proposes a simple regulatory framework specifically for venture capital funds and fund managers, alongside an easier licensing and registration system intended to reduce the administrative burden currently associated with establishing and operating venture capital funds in Pakistan. This simplified framework is designed to make it more straightforward for both domestic and potentially international fund managers to establish formal venture capital operations within the country.
Beyond regulatory simplification, the proposed law would bring venture capital activities into the formal financial system, a shift expected to help promote startup growth, attract new investment, and create employment opportunities across Pakistan’s broader economy. Bringing venture capital into the formal system would also likely improve transparency and oversight of investment activity within the sector, potentially increasing investor confidence in the long term.
SECP Chairman Doctor Kabir Sidhu said the availability of venture capital was essential for the growth of emerging startups, underscoring the commission’s rationale for prioritising this legislative effort. Following the submission to the Board of Investment, SECP and BoI will hold public consultations with stakeholders on the Venture Capital Bill, with the bill expected to be sent to the government for formal legislation once the consultation process concludes.
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