SECP Proposes New Law To Unlock Funding For Start-ups
Published August 24, 2026 | 08:40 PM
The Securities and Exchange Commission of Pakistan (SECP) has shared the draft Venture Capital (VC) Bill with the Board of Investment (BOI) for public consultation.
Key Points:
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Aims: The proposed law aims to increase access to risk capital, attract domestic and foreign investment, support start-up growth, create jobs, and contribute to economic growth.
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Background: Despite Pakistan's strong potential in the start-up, technology, and innovation sectors, these industries face limited formal venture capital access, with most investments structured offshore or outside the domestic regulatory framework.
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Solution: The draft Bill seeks to address this gap by introducing a simple and transparent framework for venture capital funds and fund managers. It provides for light-touch licensing, simplified operational structures, clear governance and reporting standards, and facilitates formalization of venture capital activity in Pakistan.
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Quote: "The Bill recognizes the high-risk and innovation-driven nature of venture capital and seeks to reduce regulatory barriers while ensuring effective governance and investor protection," said SECP Chairman Dr Kabir Ahmed Sidhu.
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Next Steps: SECP and BOI will hold public consultations with relevant stakeholders before the draft proceeds through the legislative process.