Pakistan Prime Minister Shehbaz Sharif has directed the rapid preparation of a roadmap for a new Private Equity Fund, aiming to channel both domestic and foreign capital into the country's small and medium-sized enterprises (SMEs).
The directive identifies minerals, agriculture, livestock, and information technology as key sectors with the potential to become major drivers of economic growth.
The move signals a strategic pivot toward leveraging private equity to address financing gaps in the SME sector, which remains a critical engine for job creation and GDP expansion in Pakistan.
By targeting specific high-potential industries, the government seeks to attract institutional investors and foreign direct investment that have historically been hesitant to enter the market due to perceived risks and lack of structured exit opportunities.
This initiative builds on recent efforts by the Sharif administration to improve the business environment for smaller firms.
Previously, the Prime Minister instructed the State Bank of Pakistan and commercial banks to develop a comprehensive strategy to expand SME access to bank loans, highlighting a broader policy focus on unlocking credit and equity for the private sector.