(Web Desk) - The State Bank of Pakistan has approved a regulatory overhaul that delegates key share registration and repatriation functions for foreign investors to Authorised Dealers, in a move aimed at improving ease of doing business and streamlining investment inflows.
The decision was announced in a circular issued on Monday, under which banks will now handle the registration of shares and units issued or transferred on a repatriable basis by local companies and funds to non-resident investors.
Authorised Dealers will also be responsible for facilitating remittance of dividends and disinvestment proceeds to foreign shareholders and unit holders under the revised framework.
The central bank said the move is part of broader efforts to simplify processes and improve efficiency in handling foreign investment-related transactions.
As part of the reform, documentary requirements for registration of shares and units on a repatriable basis have been reduced.
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The SBP said amendments have been made to the Foreign Exchange Manual, while Standard Operating Procedures have been developed and integrated into the revised regulatory instructions.
The new framework will take effect one month after the issuance of the circular, allowing banks time to establish required operational systems.
In parallel, the central bank has introduced a digital platform titled the “Non-Resident Shareholding Registration System (NSRS)” to automate recordkeeping of foreign shareholding in local companies and track subsequent dividend and disinvestment flows.
Under the NSRS framework, Authorised Dealers will submit monthly reports via the Data Acquisition Portal, covering share issuance, bank designation, dividend remittances and disinvestment transactions.
The first reporting cycle, covering July 2026 transactions, is scheduled for submission by the fifth working day of August 2026.
The SBP has also mandated phased submission of historical data by banks.
Phase I covers January 1, 2021 to June 30, 2026, with submission required within four months of the circular’s issuance.
Phase II spans January 1, 2016 to December 31, 2020, with a six-month deadline.
Phase III covers January 1, 2006 to December 31, 2015, to be completed within one year.
Following completion of all three phases, banks must submit a compliance report within 15 days, certified by their Group Head Compliance, confirming that the dataset is complete and free of errors.