Foreign direct investors can take out money from Pakistan without the central bank's permissionKARACHI: The State Bank of Pakistan (SBP) has introduced a new mechanism to enable companies in Pakistan to conveniently remit out disinvestment proceeds to their foreign shareholders. The initiative has been undertaken to make Pakistan more attractive for investments by boosting investors’ confidence and improving the ease of doing business. The number of required documents would be in accordance with the size of the transaction. For disinvestment proceeds exceeding the market value/break-up value: the additional required documents would include a detailed valuation/ transaction due diligence by the buyer showing basis, methodology, and key valuation metrics used for valuation. Previously, the designated bank required prior approval of the SBP for remittance of disinvestment proceeds above market value for listed securities and above breakup value for unlisted securities.

Source: Pakistan Today October 27, 2020 13:43 UTC