PAKISTAN PERMITS 100% FOREIGN EQUITY IN INSURERS

The Pakistan government is to permit 100% foreign equity in locally based insurers, according to a notice issued by the country’s Securities & Exchange Commission yesterday. Foreign investors will be required to bring in a minimum capital of PRp500m ($8.25m) for life assurers/family takaful, and PRp300m for non-life operations/general takaful, reports Pakistan’s Daily Times , without corroborating confirmation. “This step is in the interest of consistency and uniformity in the foreign investment policy governing various service sector and to make the environment more conducive for attracting foreign investment in the insurance sector”, the SEC said. A US Department Of State report on the Pakistan investment climate from 2005 noted that the previous limit had been 51%, with three government initiatives in 1992, 1997 and 2000 progressively opening the country up to foreign investment.