All
Authorised Dealers
in Foreign Exchange,
Dear
Sirs,
LOCAL
BORROWING FACILITY TO NON-RESIDENT PAKISTANIS FOR PURCHASE
OF RESIDENTIAL PLOTS / HOUSES / FLATS
Attention
of Authorized Dealers in invited to F.E. Circular No.25
of 1991 in terms of which the facility of rupee loans to
non-resident Pakistanis against security of balances held
in their Foreign Currency Accounts maintained with banks
in Pakistan was allowed. It has now been further decided
to give general permission to the Authorized Dealers
/ DFIs / Housing Finance Institutions
to grant rupee loans to those Pakistani nationals who are
working outside Pakistan, for purchase of residential flats
/ plots / houses in Pakistan up to 90%
of the cost / price of the flat / plot
/ house subject to the condition that the loan will
be liquidated by the borrowers through remittances from
abroad in foreign exchange through normal banking channel
or by debit to their foreign currency accounts. The initial
down payment of the purchase price of the flat /
plot / house up to 10% of the total price can be financed
by the purchaser / borrower from his savings in Pak rupees.
Accordingly, a new sub-Para (iii) may please be added to
paragraph
18 Chapter
XIX of Foreign Exchange Manual (6th Edition,
1987) as under:-
(iii)
Authorized Dealers / Development Financial Institutions
/ Housing Finance Institutions may grant rupee loans
to those Pakistani nationals who are working outside Pakistan
and do not own immovable property outside Pakistan, for
purchase of residential flats / plots / houses in Pakistan
up to 90% of the cost / price of the flat / plot / house
subject to the condition that the loan will be liquidated
by the borrowers through remittances from abroad in foreign
exchange through normal banking channel or by debit to
their Foreign Currency Accounts. The initial down payment
of the purchase price of the flat / plot / house up to
10% of the total price can be financed by the purchaser
/ borrower from his savings in Pak rupees.
The
above permission is, however, subject to the following
terms and conditions
-
The
rupee loan shall be extended to those non-resident
Pakistanis only who are working abroad and do not
own immovable property outside Pakistan, for the purpose
of purchasing a residential plot or house / flat and
not for any commercial purposes.
-
Loans
will be extended by the banks / DFIs / Housing Finance
Institutions subject to observation of the normal
rules and prudential regulations.
-
Sale
proceeds of the residential plot / flat / house on
dis-investment shall not be eligible for repatriation
in foreign exchange or for credit to a Foreign Currency
Account / Convertible Rupee Account of the purchaser
/ owner."
