ISLAMABAD: The caretaker Federal Minister for Finance, Revenue and Economic Affairs Dr. Shamshad Akhtar said here on Thursday that the Development Finance Institutions (DFIs), having requisite expertise, efficiency and flexibility, can be the potential drivers of growth and development of the capital market, ARY News reported.
She was chairing a meeting with the Chairman Securities and Exchange Commission of Pakistan (SECP) and the heads of DFIs to review the progress made by the DFIs on the establishment of a Private Equity and Venture Capital (PE & VC) Fund, according to press statement issued by finance ministry.
The Finance Minister said the initiative is geared towards energizing the investment landscape and extending needed resources for start-ups and SMEs to grow their businesses, harnessing the potential of capital markets to diversify sources of financing, while also bolstering the country’s economic prospects.
She emphasized that the role of DFIs was distinct from commercial banks and this needed to be reflected in their business philosophy, adding their investment policies and the manner in which these policies are regulated can have a powerful influence on the pattern of financial assets in the capital market.
The DFIs while re-affirming their commitment also apprised the Finance Minister about the progress and impediments faced in the process. Earlier, in a meeting held on September 30, 2023, the DFIs had committed to launch PE & VC Fund to serve as a catalyst for economic revival.
During the meeting, the DFIs were urged to share comprehensive profiles that encompass existing operations and activities, and their future transformation and diversification plans to achieve sustainable growth aligned with their conceptualized role.
For this purpose, the Finance Minister urged the SECP to lend support to the DFIs and advised the commission to actively engage with DFIs to highlight the opportunities present in the capital market.
The envisaged strategic shift in the business policies by DFIs is likely to have a far-reaching impact on the nation’s financial landscape, creating new opportunities for investment, economic growth, and innovation, the statement said.
It underscores the government’s commitment to fostering a dynamic and resilient economy by encouraging private-sector investment, it added.
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