ISLAMABAD: Pakistan Finance Minister Muhammad Aurangzeb on Thursday discussed expanding British International Investment’s (BII) investments in Pakistan and mobilizing more private capital for infrastructure, climate finance, SMEs and other priority sectors as he met with the institute's Managing Director and Head of Asia, Srini Nagarajan, the Finance Ministry said.

The discussions focused on BII’s investment plans for Pakistan and opportunities arising from Pakistan’s ongoing economic and structural reforms.

Nagarajan briefed the minister on BII's 2026–31 strategy, under which the institution plans to invest at least $2 billion across Asia and Africa, with South Asia and frontier markets among its key areas of focus

“He identified Pakistan as an important investment destination and expressed BII’s interest in significantly expanding its investment footprint in the country over the coming years,” said the statement.  

He also outlined BII’s focus on mobilizing private capital alongside its own investments and leveraging its experience across infrastructure, climate finance, financial services, technology and private markets to help develop investable markets and crowd in additional capital, said the statement.

The finance minister welcomed BII’s continued commitment and interest in scaling up investment in Pakistan.

He highlighted the significant improvement in macroeconomic stability and investor confidence, alongside the government’s focus on structural reforms, privatization and a transition towards private-sector-led growth.

Aurangzeb pointed to Pakistan's $3 billion international bond issuance, progress on privatization and successive sovereign credit-rating upgrades as signs of improving investor confidence with international investors and capital markets, the statement said.

“The BII delegation highlighted the potential of private equity, fund-of-funds structures and private credit to deepen financial intermediation and strengthen Pakistan’s domestic investment ecosystem.”

Nagarajan welcomed ongoing capital-market reforms and efforts to improve the investment and exit environment, noting that greater certainty and confidence could help attract larger pools of long-term private capital, the statement said.

The delegation also highlighted BII’s interest in climate-related investment, renewable energy and infrastructure, including power transmission, and expressed readiness to bring international experience and expertise to the development of viable financing structures and investable opportunities.

The discussion also covered opportunities to develop new capital-market instruments for infrastructure financing and explore innovative approaches, including the potential tokenization of suitable existing real estate assets, to broaden investment channels and mobilize new pools of capital.

Aurangzeb also briefed the delegation on the committee constituted to develop a National Private Equity Policy Framework, aimed at strengthening Pakistan’s private equity ecosystem, building domestic fund-management capacity and mobilizing long-term domestic and international capital.

He further highlighted the government’s broader access to finance agenda, including efforts to expand financing for SMEs, agriculture and other underserved segments through private credit, risk-sharing mechanisms, digital platforms and stronger financial infrastructure.

The finance minister emphasized that deeper access to finance and greater private-capital mobilization were essential to translating macroeconomic stability into investment, productive capacity, exports and sustainable economic growth.

Nagarajan also appreciated the improvement in Pakistan’s macroeconomic environment and expressed confidence in the country’s economic prospects. He reaffirmed BII’s commitment to Pakistan and its interest in expanding investment while supporting market development and mobilizing additional private capital for sustainable growth.

The finance minister welcomed BII’s continued engagement and encouraged the timely consideration of investment proposals and movement towards concrete transactions.

The two sides agreed to maintain close engagement and explore actionable opportunities for investment, knowledge sharing and private capital mobilization across Pakistan’s priority sectors.