All Authorized Dealers
In Foreign Exchange,

Dear Sirs,

ISSUE AND TRANSFER OF SECURITIES IN FAVOUR OF NON-RESIDENTS

Authorized Dealers are aware that investment on reportable basis ion the shares of the companies quoted on Stock Exchanges in Pakistan by non-residents (including overseas Pakistanis) is permissible against payment in foreign exchange through normal banking channels.

2. It has now been decided to permit investment by non-residents (including overseas Pakistanis) on reportable basis in corporate debt instruments viz. Participation Term Certificates (PTCs), Term Finance Certificates (TFCs) etc.

3. Accordingly, the following is added as sub-para (g) under para 6, Chapter XX of Foreign Exchange Manual (7^th Edition-1992):-

"(g) Issue/Transfer of registered corporate debt instruments (viz. Participation Term Certificates, Term Finance Certificates etc.) in favour of non-residents (including overseas Pakistanis) on the basis of repatriation of capital & profits subject to the condition that the issue/purchase price is paid in foreign exchange either as a remittance through banking channels or out of foreign currency account maintained with a bank in Pakistan. Remittance of profit and sale/maturity proceeds will be allowed by the State Bank on submission of evidence of inward remittance or of payment out of Foreign Currency Account."

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