The State Bank of Pakistan (SBP) has announced a new and more “transparent mechanism, with complete delegation to banks”, to help make remitting disinvestment proceeds convenient in a bid to attract foreign direct investment (FDI), it said in a press release.
1/3 #SBP introduces a transparent mechanism, with complete delegation to banks, for remitting disinvestment proceeds to facilitate foreign direct investment. For details: https://t.co/7Z3BSpttHz
— SBP (@StateBank_Pak) October 27, 2020
The new method differs from the prior one in that it does not require companies’ designated banks to seek approval from the SBP before remitting the disinvestment proceeds “above market value for listed securities, and above breakup value for unlisted securities”.
2/3 The new mechanism enables companies in #Pakistan to conveniently remit out disinvestment proceeds to non-resident shareholders.
— SBP (@StateBank_Pak) October 27, 2020
“The goal of this initiative is to make Pakistan a more attractive place for investment by increasing investors’ confidence and support ease of doing business,” the central bank underlined, saying the new method “also incorporates feedback received from investors and other stakeholders”.
3/3 It will also facilitate the local companies, in particular the start-ups, to attract foreign investment. New mechanism also incorporates feedback received from investors/other stakeholders. Circular is available at: https://t.co/XRJo9q0Fjn
— SBP (@StateBank_Pak) October 27, 2020
