ANNOUNCEMENT 01 Nov 2017
Pakistan has allowed local companies to issue USD denominated insurance policies for meeting requirements of foreign lenders.
NUMBER OF INTERVENTIONS
FE Circular No. 10 of 2017
On 1 November 2017, the State Bank of Pakistan through Foreign Exchange Circular No. 10 of 2017 allowed resident insurance companies to issue USD denominated insurance policies for meeting requirement of a foreign lender on foreign currency loans or for projects undertaken between Pakistan and a foreign/multilateral agency.
Such companies must be rated at least A by an approved Pakistani agency and will require an approval from the State Bank of Pakistan, wherein the application will require an explicit approval from the Securities and Exchange Commission of Pakistan for each proposal.
The terms and conditions for such insurance policies include, amongst others -