KARACHI: The State Bank of Pakistan (SBP) has released the notification of modernizing the Foreign Exchange Manual (Chapter-20) to strengthen the exports, and facilitate FinTech and Start-ups.
In this regard, the new policy will channelize Foreign Direct Investment (FDI) in the country by establishing holding companies abroad supported by Pakistani FinTech and Start-ups.
Similarly, the modified policy will also strengthen the exports sector of Pakistan by allowing the exporters to explore the new markets. The export-oriented companies have been allowed by SBP to open their subsidiaries or branches outside Pakistan.
Furthermore, the policy has also allowed the resident Pakistanis to acquire sweat equity.
The changes in the Foreign Exchange Regulations will also attract mutual funds, Exchange Traded Funds (ETF), and Real Estate Investment Trusts (REITs) through Pak rupee-based Roshan Digital Account (RDA) and Special Convertible Rupee Account (SCRA).
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