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:-
-
Investment
in incorporated Companies abroad:
-
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.
-
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.
-
Investment
in Joint Ventures other than incorporated Companies
abroad:
-
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:-
-
Share
of Pakistani Investor in the capital of Joint
Venture.
-
Pakistani
Investors share in terms of percentage in profit
of Joint Venture.
-
Repatriation
of original capital and profit thereon should
be ensure in the Joint Venture Agreement.
-
Net
profits earned abroad will be repatriated to Pakistan
regularly through normal banking channel and the
banks 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.
-
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.
-
Rules
and Regulations of the Country where investment
is desired, permitting investment and its repatriation
should be furnished.
-
-
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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