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business
Wednesday Feb 10 2021
By
Web Desk

SBP modernises FX regulations to attract foreign investment

By
Web Desk
The logo of the State Bank of Pakistan (SBP). — Twitter

The State Bank of Pakistan (SBP) on Thursday announced that it has modernised foreign exchange (FX) regulations in a bid to provide several financial advantages to citizens, a statement from the central bank said.

The step is in a bid to:

  • Attract foreign investment in fintech and startups through holding companies,
  • Support exporters to establish a presence abroad to promote Pakistani products; and
  • Allow residents to acquire sweat equity.

SBP has allowed the trading of units of funds quoted at the Stock Exchange through Special Convertible Rupee Accounts (SCRA) and PKR version of Roshan Digital Account.

“These account holders have also been allowed to invest in units of Mutual Funds registered as Open End Schemes (OES) under the management of Asset Management Companies (AMCs) licensed by SECP to provide asset management services,” the statement said.

Furthermore, SBP has allowed the private funds established and operated by Private Fund Management Companies licensed by Securities and Exchange Commission of Pakistan to provide private equity and venture capital fund management services, to issue units of their funds to non-resident investors.