Saudi and Pakistani business leaders have launched a joint private equity fund, and they say three quarters of its money is meant to be invested in Pakistan.
The fund was launched on Monday in Karachi by the Saudi-Pakistan Joint Business Council, a body formed by the two governments to grow private sector ties. In its statement, reported by Reuters, the council put the fund’s initial size in the multi-hundreds of millions of dollars, without giving an exact figure. Three fourths of the fund will be invested in Pakistan and the rest in Saudi Arabian projects.
Private equity funds pool money from investors and buy stakes in companies and projects, aiming to grow them and sell at a profit. For Pakistan, which has spent years trying to attract Gulf investment into its economy, the structure matters: this is private money raised by business councils, not a government loan or a deposit from the Saudi state.
The launch comes as the two countries deepen a long partnership, including in defence, and as Pakistan’s government courts investment from the Gulf to support its economy. It also comes with the usual caution that applies to every fund announcement. A launch is a statement of intent, not money already spent. The council has not published a final size, a list of the investors behind the fund, the sectors first in line, or a timetable for the first deals. What those answers turn out to be will decide whether the fund becomes a real flow of capital into Pakistani businesses or stays a headline.
Transparency note: This story is based on Reuters reporting of the business council’s statement. The fund’s size is the council’s own description; no exact figure, investor list or investment schedule has been published.
