Pakistan

Pakistan

New mechanism to enable companies to conveniently remit disinvestment proceeds to foreign shareholders

27 Oct 2020

On 27 October 2020, the State Bank of Pakistan introduced a new mechanism to enable companies in Pakistan to conveniently remit disinvestment proceeds to their foreign shareholders. The goal is to make Pakistan a more attractive place for investment by increasing investors’ confidence and support ease of doing business. As per the previous mechanism, a designated bank required prior approval of the State Bank for remittance of disinvestment proceeds above market value, for listed securities and, above breakup value, for unlisted securities. Under the new mechanism, the bank designated by the company has the authority to remit the entire disinvestment proceeds to non-resident shareholders, upon submission of required documents, without referring the case to SBP.