National Assembly Approves Pakistan Sovereign Wealth Fund Bill
Posted on 07/31/2023
On July 31, 2023, in Islamabad, The National Assembly approved legislation to establish Pakistan Sovereign Wealth Fund which aims to ensure sustainable economic development through the efficient management of funds and assets. Minister for Law and Justice, Azam Nazeer Tarar, announced the introduction of the Pakistan Sovereign Wealth Fund Bill, 2023 in the National Assembly, which was later successfully passed by the House. The Pakistan government could transfer 7 state-owned enterprises totaling Rs 2300 billion of assets to this fund. The proposed SWF could offer United Arab Emirates investors a 10% to 15% stake in these SOEs via sovereign wealth fund. Abu Dhabi Investment Authority (ADIA) has provided technical assistance to Pakistan in drafting the law.
The Pakistan Sovereign Wealth Fund aims to consolidate a number of investments of the Pakistani government into a single entity and assess their face value. The fund will be regulated with financial policies, considering the segregated accounts of the government in the form of shares and state-owned companies. The minister highlighted successful examples from Egypt and Indonesia, where similar funds have contributed significantly to their economic growth.