KARACHI: British International Investment (BII) has identified Pakistan as a key investment destination and plans to significantly expand its investment footprint in the country over the coming years.
BII Managing Director and Head of Asia Srini Nagarajan discussed the institution’s investment plans with Federal Finance Minister Muhammad Aurangzeb during a meeting in Islamabad on September 10.
The discussions focused on increasing BII’s investment in Pakistan and attracting more private capital to key sectors, including infrastructure, climate finance, private equity, SME financing, and financial services.
BII plans to invest at least $2 billion across Asia and Africa between 2026 and 2031, with Pakistan emerging as an important market under its regional investment strategy.
Nagarajan expressed interest in substantially increasing BII’s presence in Pakistan and highlighted opportunities in renewable energy, power transmission, infrastructure, technology, private credit, and private equity.
The institution also offered to use its investment experience to help develop financing structures capable of attracting additional private-sector capital.
The meeting also covered fund-of-funds structures and private credit as potential mechanisms for strengthening Pakistan’s investment ecosystem and improving access to long-term financing.
Finance Minister Muhammad Aurangzeb highlighted improvements in Pakistan’s macroeconomic stability and investor confidence. He also discussed ongoing economic reforms, privatization efforts, and measures aimed at increasing private-sector participation.
The minister pointed to Pakistan’s $3 billion international bond issuance, progress on privatization, and improvements in sovereign credit ratings as indicators of stronger investor confidence.
Both sides reviewed reforms in taxation, energy, tariff policy, capital markets, and digitalization. The government also briefed BII on its five-year tariff rationalization program aimed at improving industrial competitiveness.
Officials discussed potential new capital-market instruments to support infrastructure financing, along with options for using suitable real estate assets to attract additional investment.
Aurangzeb also highlighted the government’s work on a National Private Equity Policy Framework and efforts to increase financing for SMEs, agriculture, and other underserved sectors through private credit, risk-sharing mechanisms, and digital platforms.
BII expressed confidence in Pakistan’s economic outlook and reaffirmed its interest in increasing investment in the country.
Both sides agreed to continue discussions on specific investment opportunities, knowledge sharing, and measures to attract greater private capital into Pakistan.
British International Investment (BII) has identified Pakistan as a key investment destination and plans to significantly expand its investment footprint in the country over the coming years.
