Aurangzeb signals policy support for venture capital expansion in talks with Gobi Partners

Federal Minister for Finance and Revenue Muhammad Aurangzeb reaffirmed the government’s commitment to deepening Pakistan’s venture capital and innovation ecosystem during a meeting with a delegation from Gobi Partners, a leading Asia-focused venture capital firm.

The delegation was led by Gobi Partners Chairman Thomas Tsao and included Managing Partner Naiel Ikram and Investment Associate Abraiz Abdullah, according to a statement from the Finance Division. Aurangzeb welcomed the visitors and acknowledged the firm’s interest in Pakistan’s entrepreneurial landscape and its presence across Asian markets.

Aurangzeb highlighted that the government’s economic reform agenda prioritises private sector-led growth, deeper financial markets and technology-driven diversification, noting that access to risk capital is vital for scaling startups, promoting innovation and generating sustainable employment.

The Gobi Partners team briefed the minister on its regional footprint and investments in Pakistan through Techxila Fund I, launched in 2020, which has supported startups in sectors such as fintech, e-commerce and digital infrastructure. Delegates noted that venture capital activity has helped attract additional foreign investment and contributed to job creation, financial inclusion and digital transformation.

Gobi Partners also outlined plans for Techxila Fund II, with a proposed target size of $50 million. The new fund aims to invest in high-growth areas including fintech, logistics, health technology and software services. The firm said it intends to anchor the fund with its own capital and to attract both domestic and international institutional investors.

During discussions, the delegation called for enhancements in Pakistan’s venture capital enabling framework, including measures to encourage greater participation by domestic financial institutions and consideration of tax pass-through status for funds to facilitate local investor involvement.

Aurangzeb reiterated the government’s focus on maintaining macroeconomic stability, improving the business environment and advancing reforms in tax policy and investment facilitation. He said mobilising domestic capital alongside foreign investment is central to building a resilient, innovation-led growth model.

The meeting concluded with both sides expressing commitment to continued engagement to support the growth of Pakistan’s venture capital and technology-driven financial ecosystem.