The State Bank has allowed Pakistanis to make equity investments in India, but investors must first obtain permission from the central bank prior to doing so.
The bank has now made it easier to make investments in countries that allow capital and revenue to be repatriated to Pakistan. The hope is that when Pakistanis invest overseas to establish their subsidiaries, profits can be repatriated.
Changes in the law have allowed start-ups, fintech companies and export companies. In order to establish an investor or office abroad, it is essential that the records of individuals or organizations must be clean.
State banks have allowed banks to send funds abroad on behalf of export-oriented companies, up to 10% of their average annual export earnings over the last three calendar years, or $100,000, whichever is greater.
From the second year onwards, banks were permitted to remit $30,000 to meet the annual budgeted expenses of a representative office founded or acquired abroad with an annual increase of 10 percent in expenses, subject to valid reason.
