SBP Allows Corporate Entities to Borrow Over $1 Million Loans in Foreign Currency

In order to facilitate the corporate entities to raise foreign currency (FCY) loans from abroad and further improve the business environment in the country, State Bank of Pakistan has delegated the registration of FCY loans to banks.

According to new instructions, the respective banks will register the FCY loans irrespective of the amount. However, the banks will have to ensure that the FCY loans are in compliance with the relevant laws and regulations.


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Previously, it was required to register loans above USD 1 million with Exchange Policy Department, State Bank of Pakistan whereas the loans up to USD 1 million were handled by the respective banks.

Furthermore, the minimum tenor of FCY loans, raised by corporate entities for working capital needs and by the banks for liquidity management purposes, has been reduced to one month.


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With this step, it is expected that these initiatives will help the corporate entities meet their business needs and will reduce their turnaround time in raising financing from abroad thus promoting ease of doing business.