The need for private equity fund in focus
Prime Minister Shehbaz Sharif directed authorities to establish a Private Equity Fund framework to attract investment and improve capital access for small and medium-sized enterprises, aiming to expand non-banking financing channels.
- Expanding non-banking financing channels for businesses.
- Supporting businesses and accelerating economic activity.
- Key sectors with significant growth potential like mining and IT.
ISLAMABAD: Prime Minister Shehbaz Sharif on Monday directed authorities to prepare a framework for establishing a Private Equity Fund aimed at attracting investment and improving access to capital for small and medium-sized enterprises.
Chairing a meeting on private investment and economic growth, the prime minister directed officials to finalize the proposed framework and expand access to alternative financing channels.
He said the country needed to expand non-banking financing channels to support businesses and accelerate economic activity.
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He noted that the country’s financing system had traditionally relied heavily on banks, but lending through the banking sector remained insufficient to meet the economy’s growing investment requirements.
“The volume of investment through the banking sector is still limited, making it necessary to promote alternative sources of investment,” PM Shehbaz said.
The prime minister directed officials to present a comprehensive plan for developing private equity funds and strengthening the public equity market, saying these measures could encourage greater participation by domestic and international investors.
He said private equity funds could provide businesses with additional financing options, support expansion and contribute to employment generation.
PM Sharif highlighted mining, agriculture, livestock, energy and information technology as sectors with significant potential for growth, adding that a stronger equity market could help channel investment into these areas.
The initiative is part of the government’s broader efforts to attract investment and promote economic stability through private-sector-led growth, industrial development and export expansion.
Private equity funds raise capital from investors and invest it in companies or projects with the aim of supporting growth and generating returns. They are widely used internationally as an alternative source of business financing alongside traditional banking.
The meeting was attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, State Minister for Finance Bilal Kayani, the special assistant to the prime minister on industries and production Haroon Akhtar, and other senior officials.
Copyright Business Recorder, 2026