On 11 November 2026, the Cabinet Committee on Regulatory Reforms directed SIFC and SECP to reconsider the draft Venture Capital Bill with industry input. The committee highlighted licensing burdens, potential double taxation and foreign-exchange repatriation. No enacted amendment or regulatory exemption was announced.
Review of the draft Bill
The Cabinet Committee on Regulatory Reforms examined a draft Venture Capital Bill prepared by the Securities and Exchange Commission of Pakistan. The government has not announced enactment or an operative commencement date.
SIFC and SECP are to review the draft jointly, consult private-sector representatives and return a revised Bill to a later meeting of the Committee.
Three identified reform questions
The official statement identifies uncertainty in licensing and related compliance burdens, high taxation including potential double taxation at both fund and investor level, and impediments to repatriating funds through foreign-exchange procedures.
These issues involve different statutory regimes. A discussion of reform does not itself alter existing SECP authorisation requirements, tax liabilities or foreign-exchange rules.
Possible effects on fund structuring
Sponsors may need to reconsider which entities provide investment management, hold portfolio interests and accept subscriptions when an actual draft becomes available. Investor eligibility, fund governance, fee disclosure, valuation methodology and conflicts remain material.
Domestic and overseas investors should not assume that expected tax or remittance benefits can be priced into binding terms before supporting statutory amendments are enacted.
Immediate compliance and monitoring
Continue to assess current approvals and contractual disclosures. Review tax and foreign exchange arrangements under applicable law rather than treating the planned Bill as current law.
Stakeholders can prepare submissions on proportionate licensing, reporting standards, tax coordination, investor safeguards and workable repatriation documentation for the promised consultation.
Why this development matters
The development signals legislative work, not a presently available new licence or tax exemption.
Specific steps for affected organisations
- Review current fund and manager authorisations
- Document tax and foreign-exchange assumptions for investments
- Track publication of revised text and consultations
- Do not describe proposed concessions as operative
Timing and legal status
11 November 2026 committee review. Revised draft to return to a subsequent meeting; no enactment date stated.
Press Information Department, Government of Pakistan