KARACHI: State Bank of Pakistan on Tuesday introduced an annual foreign investment survey to obtain information for recording Pakistan’s balance of payments and international investment positions.
This exercise is being carried out by the central bank to ensure it has detailed information regarding foreign assets and liabilities of entity and corporations operating in Pakistan, reported an English daily.
SBP is carrying out this survey in convention of a global undertaking and in conjunction with Securities and Exchange Commission of Pakistan (SECP) and International Monetary Fund (IMF).
All Pakistani entities, enterprises and liaison offices of foreign companies operating in the country who have foreign assets and liabilities must provide this information by December 31st, 2017.
The central bank stated the information shared with it would remain strictly confidential and will be utilized for statistical purposes only. Survey results will come out in aggregate form, which will avert leakage of data by individuals.
SECP has also stated entities should fill in questionnaires pertaining to December data should be submitted to the central bank by March 30th.
International investment position of a nation discloses total holdings of foreign assets by local citizens and total holdings of domestic assets by foreign residents. The balance of payments is a representation of flows during that period.
In this regard, all entities have been advocated to provide details of non-resident direct investors who have equity ownership of 10 percent or more, non-resident direct investment enterprises overseas, in which a local company has made direct investment.
Also, data pertaining to non-resident fellow enterprises needs to be shared whose controlling parent and direct investor is resident of Pakistan.
SBP has sought names of direct investors’ enterprises and data regarding equity held by every foreign direct investor. Data pertaining to reinvested earnings is also sought which reflects the use of all kinds of reserves and un-appropriate profit/loss ascribable to foreign direct investors, portfolio investment by non-resident portfolio investors.
The central bank specified debt securities cover all tradeable securities, aside those categorized as equity securities. Debt securities include debentures, notes, bonds etc.
SBP said debt securities cover all tradable securities, except those classified as equity securities.
