ISLAMABAD, Jan 9: The Hong Kong-based Crosby Investment Company intends to establish another Rs1.5 billion private equity fund in Pakistan to promote investment and expand industrial base.

The company has already launched a Dragon Fund recently in private equity market. This was stated by Robert Owen, Chairman of the company in a meeting with Finance Minister Shaukat Aziz here on Friday that the company was focused on Asia although it has strong presence in the US.

Shaukat Aziz welcomed the initiatives being taken by the Crosby and said Pakistan offered a huge potential for mutual fund market. To realize its full potential, the government has introduced a transparent regulatory regime to encourage expansion of mutual fund industry in the country.

This would in turn, activate investment as utilisation of pension and saving instruments and channelling them into capital markets requires a sustained effort and encouragement. He also sought Crosby assistance in encouraging foreign investment into capital markets.

Shaukat Aziz stated that improved corporate governance, tax incentives and low interest rates could be leveraged in promoting asset management to trigger growth of capital markets in the country.

Higher economic growth, consistent policies and low interest rates would generate housing demand and create demand for consumer goods including house-old appliances, automobiles and construction materials in the country.

Finance minister stated that macroeconomic stability, improved international credit ratings, capital market reforms, stable currency and low inflation have accelerated growth of middle class, which in turn have increased the demand of consumer goods in Pakistan.

He also urged Crosby to encourage foreign equity in stock markets and work to restructure industrial units through the private equity fund. He also expressed satisfaction over Crosby's future plans of starting brokerage operations in Pakistan.