Circulars/Notifications - Exchange Policy Department  
 F.E. Circular No. 11
March 15, 1995 

All Authorized Dealers
In Foreign Exchange,

Dear Sirs,

INVESTMENT ABROAD BY RESIDENT PAKISTANIS

In suppression of the instructions contained in F.E. Circular No. 66 of 1993, it has been decided with the consent of the Government to allow residents of Pakistan including firms and companies to make investment in companies (whether incorporated or not)/Joint Ventures, abroad on reportable basis through Foreign Exchange Bearer Certificates subject to the following conditions:-

    1. Investment in incorporated Companies abroad:

    1. The investor should make a return to the Foreign Exchange Department (Investment Division), State Bank of Pakistan, Central Directorate, Karachi within one month of acquiring the securities giving particulars thereof, in the specimen given in Appendix V-97 (copy enclosed) of the Foreign Exchange Manual.

    2. The Dividend/Sale Proceeds thereof (including capital gains) should be repatriated to Pakistan through normal banking channel. Such amount will not be allowed to be credited to the Foreign Currency Account or for purchase of Foreign Exchange Bearer Certificates/other Pakistani securities on reportable basis.

 

    1. Investment in Joint Ventures other than incorporated Companies abroad:

    1. Full particulars of overseas Joint Venture with a copy of Joint Venture Agreement shall be submitted to Foreign Exchange Department (Investment Division), State Bank of Pakistan, Central Directorate, Karachi alongwith following additional information:-

    1. Share of Pakistani Investor in the capital of Joint Venture.

    2. Pakistani Investors share in terms of percentage in profit of Joint Venture.

    1. Repatriation of original capital and profit thereon should be ensure in the Joint Venture Agreement.

     

    1. Net profits earned abroad will be repatriated to Pakistan regularly through normal banking channel and the bank’s Proceeds Realization Certificate in evidence of receipt of profit shall be produced to Foreign Exchange Department (Investment Division), State Bank of Pakistan, Central Directorate, Karachi.

    1. Rupee expenditure, if any, incurred in Pakistan in connection with the Joint Venture shall be re-imbursed by the proposed Joint Venture and should be repatriated to Pakistan through normal banking channel.

    2. Rules and Regulations of the Country where investment is desired, permitting investment and its repatriation should be furnished.

    3.  

    4. Annual Audited Accounts of the Joint Venture will be furnished to Foreign Exchange Department (Investment Division), State Bank of Pakistan, Central Directorate, Karachi regularly.

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

App. V-97 FOREIGN EXCHANGE REGULATION ACT, 1947(VII OF 1947)

 

       
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