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USAID Launches Pakistan Private Investment Initiative to mobilise at least $150 million in private equity investment

  • Posted On: 23rd July 2013
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USAID Launches Pakistan Private Investment Initiative to mobilise at least $150 million in private equity investment

The U.S. Agency for International Development (USAID) Administrator Dr. Rajiv Shah, announced the Pakistan Private Investment Initiative with the Abraaj Group and JS Private Equity Management.

The Pakistan Private Investment Initiative will launch two new private equity funds focused solely on Pakistan’s dynamic and fast growing small- and medium-sized businesses.  USAID will provide a seed investment to capitalize the funds and Abraaj Group and JS Private Equity Management have committed to match or exceed these seed funds with investments of their own, as well as private funds raised from other limited investors.

“We are seeding individual funds with $24 million each. The Abraaj Group and JSPE will match or exceed our commitment.  We fully expect them to exceed that contribution,” said Dr. Rajiv Shah.  “Pooled funds will initially be $100 million which we expect will grow many fold into hundreds of millions of dollars in investment for small and medium businesses.”

By investing in Pakistani private businesses, the United States is supporting private sector growth and job creation – and Pakistan’s role as a robust and fast-growing economic partner among its neighbors and within the global economy.

The announcement came at the end of the first day of a U.S. government-sponsored investment conference on Pakistan.  “By partnering with Abraaj and JS Private Equity Management, USAID capitalizes on these companies’ expertise to make smart investment decisions that will grow the Pakistani economy, create jobs, and generate profits for investors who seize the economic opportunities that Pakistan presents,” Administrator Shah said.

“As one of the most experienced investors in growth markets, we are pleased to partner with USAID on this initiative and help bring greater opportunities to small and mid-cap businesses in Pakistan,” said Arif Naqvi, Founder and Group CEO of The Abraaj Group.

Ali Siddiqui, the Chairman and CIO of JS Private Equity Management said “We are excited to partner with USAID in this new effort to invest in our country’s dynamic enterprise sector where our joint efforts will create many jobs and expand incomes.”

The Pakistan Private Investment Initiative is a new approach that will identify promising businesses with growth prospects and invest in them to expand their market share, innovate product and service lines, and ultimately create jobs and increase incomes.  In addition, the Pakistan Private Investment Initiative is expected to demonstrate that investing in growth-focused enterprises can generate real profits for investors.  This demonstration effect is expected to attract more investment into the enterprise sector through establishment of additional private equity funds.

The United States sees Pakistan’s prosperity as good for Pakistan, good for the region, and good for the United States:  trade and investment are the future of the U.S.-Pakistan relationship.

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