Circulars/Notifications - Exchange Policy Department  
 FE Circular No. 03 of 2022

August 01, 2022

The Presidents/ Chief Executives of
All Authorized Dealers (ADs) in Foreign Exchange

Dear Sir/Madam,

Amendment in Regulatory Instructions - NRP Rupee Business Value Account (NRBVA)

     Attention of Authorized Dealers (ADs) is invited to Chapter 8 of the Foreign Exchange Manual, which inter alia, sets out regulations for opening and maintaining non-resident rupee accounts in Pakistan.  

2. In order to facilitate the business entities incorporated abroad with majority shareholding of non-resident Pakistanis, it has been decided to introduce a separate category of non-resident rupee account named as Non Resident Rupee Business Value Account (NRBVA). Accordingly, sub-para (i) para 2 of the chapter has been revised and a new para 8A has been inserted after para 8 in Chapter 8 of the Foreign Exchange Manual as given below:

Sub-Para (i) of Para 2. Opening and Maintaining of Non-resident Rupee Accounts of Persons other than Banks shall be replaced with the following:

“(i) ADs may open and maintain the following categories of non-resident rupee accounts of the individuals and entities mentioned in Para 1 above:
           a) Non-resident Rupee Account-Repatriable (NRAR).
           b) Non-resident Rupee Account-Non-repatriable (NRAN).
           c) NRP Rupee Value Account (NRVA) for Non-resident Pakistanis only.
           d) NRP Rupee Business Value Account (NRBVA)”

Para 8 A. NRP Rupee Business Value Account (NRBVA)
(I)    Authorized Dealers (ADs) may open ‘NRP Rupee Business Value Account (NRBVA)’ of the legal entities incorporated or regisstered abroad and majority (51% or more) owned and/or controlled by NRPs and/or non-resident POC holders. These entities could be Companies, Associations, Foundations, Limited liability partnerships (LLPs), Societies, Trusts, Waqfs and /or other similar legal arrangement. However, this will not include sole proprietorships or unregistered partnerships. Operations of Non Resident Rupee Business Value Account shall be governed by the regulations mentioned as below:

(II) General Operations
          a) ADs may allow operations in NRBVA through electronic channels besides conventional modes in practice.
          ADs may also issue cheque book, if required by the authorized account operators.
          b) In case NRBVA becomes dormant due to non-operation, ADs shall devise a mechanism, aligned with           applicable regulations, to reactivate the account digitally.
          c) ADs are required to provide online real time convertibility from NRBVA to FCBVA of the customer based on
          the request made by the authorized account operator electronically for the eligible transfers to FCBVA. For the
          sake of transparency, the ADs shall indicate the exchange rate applicable to the transaction.
          d) ADs will ensure regular monitoring of NRBVAs to mitigate ML/TF risk.

(III) Credits to the NRP Rupee Business Value Account
          a) Remittances received from abroad through banking channels
          b) Transfer of funds from its own FCBVA with the same AD
           c) Profit, mark-up, return or proceeds of sale or maturity of permissible investments made from NRBVA
          d) Reversal of any erroneous debit from NRBVA.

(IV) Debits from the NRP Rupee Business Value Account
          a) Investments in the following, provided that the relevant laws/regulations permit such investment:

                    i. Registered Debt securities of Government of Pakistan (T-bills, PIBs, Sukuk and any other registered                     debt securities of the government).
                    ii. Shares quoted on the stock exchange(s) in Pakistan.
                    iii. Investments in units of funds quoted at stock exchange(s) and units of mutual funds registered as                     Open End Schemes (OES) under management of Asset Management Companies (AMCs) licensed by                     SECP to provide asset management services.
                    iv. Shares of companies not listed on stock exchanges(s) in Pakistan.
                    v. Units of private funds established and operated by Private Fund Management Company licensed by                     SECP to provide private equity and venture capital fund management services.
                    vi. Term /remunerative deposit products of the AD maintaining the account.

          The transfer of funds for the above investments shall be allowed by the ADs from NRBVA only in the eligible           products, through the special instructions received from authorized account operator in this behalf.

          b) Transfer of funds to its own FCBVA with same AD.
          c) Transfer to any other FCY or PKR account.
          d) Remittance or payments from NRBVA to the extent of balance available therein, without any prior approval
          of the State Bank of Pakistan.
         e) Any other payment within Pakistan. However, any amount so paid shall not be allowed to be credited back                into the account, except as otherwise permissible under the regulations.
           f) Reversal of any erroneous credit entry.

3. ADs are advised to bring the above instructions to the notice of all their constituents for meticulous compliance.

Yours truly,


(Athar Ghafoor)
Additional Director

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