Islamabad: The Economic Coordination Committee (ECC) has raised the authorisation limit of the State Bank with regard to the endorsement of overseas investments made by local companies, a news source reported on August 15. Previously the central bank could endorse investments up to USD 5 million and required approval from the ECC in case of higher investments. The ceiling has now been raised up to USD 10 million.
The committee members made the decision while considering the case of Eastern Products (Pvt) Limited Pakistan and decided to empower SBP further on the matter.
Minister for Planning, Development and Special Initiatives Asad Umar brought up the matter and emphasised that a revision in the upward limit for the central bank would improve the country’s ease-of-doing business index. He also suggested that this limit should be revised after every five years.
Advisor to the Prime Minister (PM) on Institutional Reforms and former Governor of State Bank Dr Ishrat Husain also agreed with the minister’s views. In response, the ECC provided its approval to the suggestion of revision in the upper limit put forth by the minister.
