Letter written to Naqvi: Foreign investors face security clearance roadblock: PTBA

KARACHI: The government has reportedly started rejecting the security clearance of foreign investors. The Pakistan Tax Bar Association (PTBA) raised the issue in a letter sent to Federal Minister for Interior, Syed Mohsin Raza Naqvi, showing serious concerns about the security clearance process for foreign investors.

Under the Companies Regulations, 2024, every foreign subscriber and director is required to seek security clearance by filing GR-Performa, undertaking, and other required documents through the SECP with the Ministry of Interior.

After the incorporation, companies start their investments and setting up of their premises and factories to commence their business operational activity in Pakistan, the letter said.

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However, companies are now receiving unilateral rejection letters from the SECP, informing them that the security clearance for their foreign subscribers and directors was rejected.

“These letters neither specify the reasons for such rejection nor any opportunity of hearing to explain the defects/discrepancy if any,” PTBA said.

“These letters are sending a negative message to foreign investors who invest in Pakistan and now they are informed that they are not security cleared, putting their entire business set up in Pakistan at risk, which is against the government’s efforts to attract foreign investors in Pakistan,” it added. Furthermore, PTBA urged Mohsin Naqvi to address the issue on an immediate basis to avoid tarnishing the government’s efforts to attract foreign investments in the country.

Copyright Business Recorder, 2025