SBP announces changes in FX regulations

The State Bank of Pakistan (SBP) has "modernised" foreign exchange (FX) regulations, a statement said Thursday, as  the central bank aims at attracting foreign investment.

The decision is 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.