ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has decided to broaden the investment opportunities for startups and technology entities in Pakistan. The SECP has sent its draft Venture Capital Bill to the Board of Investment for this purpose.
The proposed legislation aims to expand investment opportunities for startups and technology companies while bringing venture capital activities into Pakistan’s formal financial system.
Simplified Rules for Venture Capital
The SECP said startups and technology companies currently face limited access to formal venture capital funding.
Therefore, the proposed bill introduces a simplified regulatory framework for venture capital funds and fund managers.
It also seeks to streamline licensing and registration procedures for venture capital businesses. Consequently, the reforms could make investment processes more accessible for emerging companies.
SECP Chairman Dr Kabir Sidhu said venture capital availability remains essential for developing Pakistan’s startup ecosystem.
He added that the proposed legislation could support new businesses, attract investment and generate employment opportunities.
Consultations to Shape Proposed Law
Meanwhile, the SECP and Board of Investment will conduct consultations with relevant stakeholders on the proposed Venture Capital Bill.
The consultation process will allow industry representatives and other stakeholders to provide recommendations on the proposed framework.
Following these consultations, authorities will forward the bill to the government for consideration and legislation.
The proposed law represents an effort to strengthen Pakistan’s startup ecosystem and encourage greater participation from investors.
According to the SECP, the new initiative will provide easy access to technology companies to attract investment for their their long-term growth.
