Finance minister backs venture capital reforms in meeting with Gobi Partners

Federal Minister for Finance and Revenue Muhammad Aurangzeb Wednesday underscored the government’s commitment to strengthening Pakistan’s venture capital and innovation ecosystem during a meeting with a delegation of Gobi Partners.

According to a statement issued by the Finance Division, the delegation was led by Gobi Partners Chairman Thomas Tsao and included Managing Partner Naiel Ikram and Investment Associate Abraiz Abdullah.

Welcoming the delegation, the finance minister appreciated Gobi Partners’ interest in Pakistan’s venture capital landscape and acknowledged the firm’s presence across Asia.

He said the government was prioritising private sector-led growth, financial market deepening and technology-driven economic diversification as part of its broader economic reform agenda.

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Aurangzeb stressed that access to risk capital was critical for scaling startups, fostering innovation and generating sustainable employment opportunities.

The delegation briefed the minister on Gobi’s regional footprint and its investments in Pakistan through Techxila Fund I, launched in 2020.

The fund has backed startups in fintech, e-commerce and digital infrastructure.

It was noted during the meeting that venture capital participation had helped mobilise additional foreign investment into Pakistan and contributed to job creation, financial inclusion and digital transformation.

Gobi Partners also shared plans for Techxila Fund II, with a proposed target size of $50 million.

The new fund aims to invest in high-potential sectors including fintech, logistics, health technology and software services.

The firm expressed its intention to anchor the fund with its own capital and mobilise participation from domestic and international institutional investors.

During the discussion, the delegation highlighted the need to further strengthen the enabling framework for venture capital in Pakistan.

Suggestions included encouraging greater participation by domestic financial institutions in venture capital and private equity, as well as considering tax pass-through status for such funds to facilitate local investor participation.

The finance minister reaffirmed the government’s resolve to maintain macroeconomic stability, improve the business climate and advance reforms in tax policy and investment facilitation.

He said mobilising domestic capital alongside foreign investment was central to building a resilient and sustainable innovation-led growth model.

The meeting concluded with both sides expressing a commitment to continued engagement to support Pakistan’s evolving venture capital and technology-driven financial ecosystem.