The federal government has instructed the Special Investment Facilitation Council (SIFC) and the Securities and Exchange Commission of Pakistan (SECP) to revise the draft Venture Capital Bill. This directive came during the 16th meeting of the Cabinet Committee on Regulatory Reforms (CCoRR), which was reviewing regulations for Pakistan’s venture capital industry.
The committee identified several hurdles that currently affect investment in the sector. These include uncertainty regarding licensing requirements, high taxation, and difficulties faced by foreign investors when trying to transfer funds out of Pakistan. Additionally, the committee highlighted double taxation at both the investor level and the venture capital fund level as a major concern.
The committee directed the SIFC and SECP to review the proposed legislation together. They are required to consult with relevant industry stakeholders before finalizing the revised draft. This updated bill will be presented at the committee’s next meeting for further consideration.
During the same meeting, the committee reviewed the progress of seven approved regulatory reform packages. The committee directed the SIFC to contact the relevant regulatory authorities to ensure that these pending reforms are implemented within the prescribed timelines.
