State Bank of Pakistan removes cap on forex deposits for FDI, Donations
Pakistan Times Business & Commerce Desk

KARACHI: State Bank of Pakistan has decided that FE-25 Deposits in the form of Foreign Direct Investment and funds received for social and economic uplift through international donor agencies / welfare organisations may be excluded, by the banks / DFIs, from the calculation of limit on FE-25 Deposits.

The central bank has taken this decision to promote Foreign Direct Investment and facilitate social and economic uplift through donor agencies / welfare organizations.

This will, however, be subject to the condition that the banks / DFIs will obtain an undertaking from the Account Holder that such funds are remitted from abroad and would be used for poverty alleviation and socio-economic uplift.

The genuineness of all such exclusions will be verified by the SBP Inspectors during the subsequent inspections.

All such FE-25 deposits excluded from the calculation of limit under Prudential Regulation O-5 shall be reported in the footnote to FE-25 Deposits (Note # 10) in the Weekly Statement of Position, says an SBP communique.●