ISLAMABAD, November 11, 2026: The Cabinet Committee on Regulatory Reforms (CCoRR) has directed the Special Investment Facilitation Council (SIFC) and Securities and Exchange Commission of Pakistan (SECP) to jointly revise the draft Venture Capital Bill following consultations with private-sector stakeholders to address regulatory barriers and facilitate investment.
The decision was taken during the committee’s 16th meeting, which reviewed Pakistan’s venture capital regulatory framework, focusing on simplifying compliance requirements, improving the ease of doing business and attracting domestic and international investment.
The committee examined the draft legislation prepared by SECP in accordance with its earlier directions and identified several regulatory and operational challenges affecting the growth of the country’s venture capital industry.
The discussions highlighted three major obstacles: regulatory uncertainty and compliance burdens under the existing licensing framework, high taxation including double taxation at fund and investor levels, and foreign exchange repatriation requirements that could discourage international investors and venture capital managers.
The committee observed that addressing these issues was essential to developing a more competitive and investment-friendly venture capital ecosystem.
It directed SIFC and SECP to undertake a comprehensive review of the proposed legislation in consultation with private-sector representatives, venture capital industry stakeholders and other relevant institutions.
The consultation process will focus on incorporating practical industry recommendations into the draft law to reduce regulatory complexities and facilitate investment in emerging and growth-oriented businesses.
The revised Venture Capital Bill will be presented at the committee’s next meeting for further consideration.
The proposed reforms are intended to create a more predictable regulatory environment for venture capital funds and investors, particularly those seeking to finance startups and expanding businesses.
Committee reviews progress on seven regulatory reform packages
During the meeting, the committee also reviewed implementation progress on seven previously endorsed regulatory reform packages covering broader efforts to simplify business regulations.
Emphasising the importance of timely execution, the committee directed SIFC to engage with relevant regulatory authorities and ensure that outstanding reform commitments are implemented within the prescribed timelines.
The committee stressed the need for coordinated institutional efforts and continued stakeholder engagement to remove regulatory bottlenecks and strengthen Pakistan’s investment environment.
The latest directives form part of the government’s broader regulatory reform agenda aimed at improving business facilitation, encouraging private investment and supporting the development of emerging sectors.