The Head/Principal Offices of all
Authorized Dealers in Foreign Exchange

Dear Sirs/Madam

Investment Abroad by Locally Established Mutual Funds

In continuation of State Bank of Pakistan’s policy towards liberalization of Foreign Exchange regime, it has been decided to allow locally established mutual funds to invest abroad for the purposes of diversification of their asset classes / portfolio, to the extent of 30% of the aggregate funds mobilized (including foreign currency funds), in permissible categories subject to a cap of US$ 15 million at any given time. The investment made abroad must strictly follow the scope approved by Securities and Exchange Commission of Pakistan (SECP) & subject to all other terms and conditions as specified for the operations and investments abroad by SECP.

Such funds would need prior approval of State Bank of Pakistan. In this regard, each interested locally established mutual fund is required to apply, through an Authorized Dealer, to Exchange Policy Department, State Bank of Pakistan by providing details of the proposed operations alongwith the related documents. Each request will be evaluated on a case to case basis and will be responded accordingly.

Please bring the above to the notice of all your constituents.