i) Investment abroad is allowed only for those countries that allow repatriation of profits, dividends and capital.

ii) Only companies incorporated in Pakistan including foreign controlled companies and firms owned by Pakistani Nationals resident in Pakistan will be allowed investment under the scheme.

iii) The business activity of the company, firm, joint venture in which investment is desired to be made should ordinarily be of the same nature as that in which the investor is already engaged in Pakistan, or in which the investor has the potential to acquire sufficient expertise from the market for running the business.

iv) The investor should be financially sound as shown by its audited accounts for the last three years. In the case of a company in the I.T. business, however, the condition of three years may be reduced to one year.

v) The proposal should be economically viable as evidenced from a feasibility report. It should have the potential for future earnings of foreign exchange coupled with other advantages to the country such as employment opportunities for Pakistani nationals and improvement in national human resources.

vi) The funds proposed for investment should be legitimate and tax paid, and the investor should have a clean record of loan repayments.

vii) Funding for the proposed investment abroad would be allowed only from the inter-bank market or from funds available in the foreign currency accounts of investors opened in terms of FE 25 of 1998, or out of funds available in the incremental deposits of frozen foreign currency accounts, or from Foreign Currency accounts maintained by exporters in terms of Para 29 Chapter XII of Foreign Exchange Manual/FE 25 of 2000 (net of amount paid to foreign importers/agents).

viii) Small investments by individuals in a few shares of listed companies abroad including participation by Pakistani employees of subsidiaries of foreign companies in Pakistan in their share option plans would, however, be permitted without the detailed scrutiny outlined above.

ix) The State Bank under the aforesaid guideline would also deal with the proposals emanating from the Public Sector Organizations providing financial services whereas the concerned ministry would deal with the investment proposals from all other public sector organizations.

i. Make a return to State Bank on the prescribed form V-97 through their banker within one month of making the investment;

ii. To provide a copy of Certificate of Incorporation and Certificate of Commencement of Business in the country where investment will take place to the Authorized Dealer along with copies of the share certificates so invested and bonus issues, if any.

iii. To repatriate the dividend/disinvestments proceeds of the shares (including capital gains) to Pakistan through normal banking channels. The amounts so received would be converted to local currency by the bank concerned and a Proceeds Realization Certificate in original evidencing the same shall be filed by the owner with the State Bank. Such amounts shall not be allowed for credit to a Foreign Currency Account or for purchase of Pakistani securities on Repatriable basis.