Islamabad:
Acting Federal Minister for Finance, Revenue and Economic Affairs, Dr Shamshad Akhtar, highlighted the central role that Development Finance Institutions (DFIs) can play with expertise, efficiency and flexibility in promoting growth and development in the capital market. Presiding over a meeting with the chairman of the Securities and Exchange Commission of Pakistan (SECP) and heads of DFIs, Akhtar reviewed the progress made in setting up a Private Equity and Venture Capital (PE & VC) Fund.
In a commitment made during a meeting on September 30, 2023, DFIs had pledged to launch a PE & VC Fund, positioning it as a catalyst for economic revival. The Finance Minister reiterated the importance of this initiative, stating that it aims to revitalize the investment landscape by providing substantial resources to start-ups and SMEs to promote their growth. This move not only leverages the potential of capital markets to diversify funding sources, but also strengthens the overall economic outlook.
Akhtar highlighted the distinct role of DFIs compared to commercial banks and emphasized the need for their business philosophy to reflect this uniqueness. Their investment policies, he said, can significantly affect the pattern of financial assets in the capital market.
During the meeting, DFIs were invited to share comprehensive profiles detailing their current operations, activities and future plans for transformation and diversification. Akhtar emphasized the importance of aligning with their perceived role for sustainable development. To this end, he urged the SECP to provide support to DFIs and actively engage with DFIs by highlighting opportunities in the capital market.
Published in The Express Tribune, November 10u2023.
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