SECP to streamline process of security clearance for foreign investors

KARACHI: In pursuance of its mandate to encourage and promote investment, the Securities and Exchange Commission of Pakistan (SECP) has been working on an initiative to provide a one-window operation to foreign entities for obtaining security clearance certificate for incorporation in Pakistan.

The SECP organized an important meeting here Monday which was attended by officials of the Interior Ministry, representatives of corporate sector and the legal fraternity. Federal Interior Minister, Rehman Malik chaired the meeting.

Interior Minister A. Rehman Malik said that a committee will be set up with representation from all stakeholders including the Interior Ministry, SECP and the business community to review the policy /rules for clearance to foreign investors.

"Please, design a new proforma for clearance to foreign investors through mutual consultation. I would welcome your right decisions," he said.

Responding to queries from the business community, he said that every country has made rules and regulations for the foreign investment keeping in view their security concerns.

In Dubai, even at the dedicated industrial zones, there are certain laws for foreign investment to ensure security of the country as well.

Yes, it is important to have liberal and attractive foreign investment policy but more important is to address security concerns of our country. No foreign security will come in, unless we have satisfactory security systems, he said.

He said that in the questionnaire for issuing clearance to a foreign investor the certain data about his social and business life along with his family background is sought to determine his eligibility. Once the required information about a foreign investor is obtained, there will be no questionnaire in next five years, he said.

"We must determine the investors' repute before giving clearance. We should encourage only dedicated investors," he asserted.

He said that local partner would be responsible for any action/activity by a foreign investors which is not in agreement with the local law.

He said that Federal Investigating Agency (FIA) has found some cases of smuggled money to be invested by foreign investment.  The Interior Minister , however, assured the business community that he would welcome all their demands which are aimed at promoting investment positively.

A. Rehman Malik highlighted the Government's efforts to contain terrorism and extremism in the country.  " Yes, we are facing terrorism but we have broken the backbone of terrorists. End of terrorism is must for our prosperity and development.

Pakistan is very rich in natural resources and has a big potential to grow," he remarked adding that terrorism has become a global threat that we would have to fight jointly.

He said that both Taliban in Afghanistan and Pakistan are the same thing.

If Taliban wanted a dialogue with the Government, they would have to come on common platform.