SBP has issued FE Circular No. 01 of 2021 dated 10 February 2021[“Circular”] which revises the policy for equity investment abroad by amending para 13 of chapter 20 of the Foreign Exchange Manual ["FEM'].

The purpose of this Circular is to provide facilitation to Start-ups, Fintechs and Exports. The new policy would allow Pakistani Fintechs and Start-ups to establish holding companies abroad. This new policy further facilitates exporters to establish subsidiaries or branch offices outside Pakistan – These measures, it transpires, have been taken in order to attract foreign direct investment.