Document background
The Equity Commitment Letter is a fundamental document in Pakistani corporate finance transactions, typically used in the early stages of significant equity investments or corporate restructurings. It provides a legally binding framework for the proposed investment while allowing parties to proceed with detailed due diligence and documentation. The letter must comply with Pakistani corporate laws, particularly the Companies Act 2017 and Securities Act 2015, and may need to address foreign investment regulations if international investors are involved. The document typically precedes more detailed transaction documents and provides essential certainty to stakeholders about the availability of funding. It's particularly crucial in time-sensitive transactions or where multiple parties or regulatory approvals are involved.
