Geert Bekaert and Campbell R. Harvey's
Chronology of Economic, Political and Financial Events in Emerging Markets
Pakistan
Major Political and Economic Events
Date
7600
Foreign Private Investment Act decrees that foreigners are not allowed to directly invest in Pakistan. However, investment is allowed provided formal permission has been granted by the State Bank of Pakistan and the Ministry of Finance.
8000
IMF granted three-year US$1.73 billion credit, the largest ever to a developing country.a
8100
Islamic banking system introduced, with depositors earning a share of banks' profits or losses and borrowers pledging a portion of their return in lieu of interest.a
820108
The rupee was devalued when the currency was its peg to the U.S. Dollar ended and the fixed exchange rate abolished. A controlled, floating Effective Rate was established in relation to a "basket" of currencies.a
8500
First national elections in almost eight years. Prime minister promises to bring country back to democracy after 8 years of military rule.a
860507
Foreign banks operating in Pakistan already authorized to underwrite share issues of companies incorporated in Pakistan were permitted to underwrite term certificates, term finance certificates, and modaraba certificates, in association with the Investment Corporation of Pakistan. The total value of issues which foreign banks can underwrite can not exceed 10% of the capital offered to the general public for subscription.a3(first entry)
8608
Benazir Bhutto, opposition leader, arrested.a
861122
General permission was granted to public limited companies whose shares are quoted on stock exchanges in Pakistan to transfer shares to nonresident Pakistanis subject to certain conditions.a3
880817
President, Chief of Staff and other high ranking officials killed in Airplane explosion.a
881201
Benazir Bhutto seated as Prime Minister.a
890115
Transfers of Pakistan securities between two nonresidents would require permission from the Government if the original investment in Pakistan required government approval.a3
9008
Prime Minister Benazir Bhutto was dismissed.
9011
Several liberalization moves were announced that eased both domestic and foreign investment procedures.
9102
IFC Liberalization date.i
9102
Bekaert/Harvey Official Liberalization date. [Final and NBER version].
9102
Kim and Singal Liberalization date.
9102
New foreign investment law passed. Now there is no restriction on foreigners or nonresident Pakistanis purchasing shares of a listed company or subscribing to public offerings of shares. There are, however, some approvals still necessary from the Investment Promotion Bureau, the government's sanctioning and foreign investment regulatory body, and the exchange control restrictions of the State Bank of Pakistan are imposed in certain circumstances.e 
910207
The local borrowing entitlement of manufacturing companies exporting at least 50% of their production was allowed without any limit. The other companies' entitlement of their local borrowing was also raised to 100% of paid-up capital, capital revenues, undistributed profits, and unremitted dividends as disclosed by their last audited annual balance sheet.a3
9103
Foreign investment in listed shares takes place.e
9106
Buckberg Liberalization date.d
9107
Pakistan Fund launched on the Hong Kong Stock Exchange with net asset value of $33.5 million as of December 1991.aa
9300
Removal of entry barriers for the banking sector.a13
940926
ADR effective date. (Company=PAKISTAN TELECOMMUNICATIONS - 144A, Exchange=PORTAL)a11
9501
Duty drawbacks on fiber exports removed.
9507
Rupee devalued.
9510
Rupee devalued 0.2% against dollar.
9500
The introduction of the Insider Trading Laws.a4
9608
The telecommunication company is privatized. Rupee devalued 0.34% against dollar. Large government borrowing from the banking sector.
9609
Rupee devalued 3.8% against dollar. Government announced it will exempt capital gains on trading of shares of listed companies.
9610
Provincial governments pledged to collect 2 billion rupees through the levy of a farm tax. Rupee devalued by 8.5% against dollar. 
9612
The government introduced a package which exempts companies from a 10% withholding tax for bond issues, exempts investors from income taxes for earnings from rights issues as well as income from mutual funds, and exempts insurance companies from capital gains taxes.
9701
Government announced that it would sell a $150 million five-year bond convertible into shares of Pakistan Telecom.
9703
The general sales tax is reduced from 18% to 12.5%. Government announced plans to narrow personal income tax brackets from 10%-35% to 5%-20%. The management of Pakistan International Airlines said it would postpone its privatization for at least 3 years.
9704
Custom duties and import tariffs were cut drastically. Rupee devalued.
970430
(Controls on capital and money market instruments) Nonresidents were permitted to invest in the seventh issue of the WAPDA bonds and to trade freely in the secondary market for registered/corporate debt instruments and bonds listed in the Stock Exchange along with FIBs and TBs.a3
9705
The government announced an incentive package, which includes an extension of capital gains exemptions for 3 years, tax waivers on dividends and bonus shares, and tax exemptions on debt securities for foreign investors. 
9707
The government made plans to narrow the trade gap. In order to do so they will have to promote high valued-added exports by providing adequate financing terms and lower duties on capital and machinery. The rate on a variety of loans was cut 6%.
970813
(Provisions specific to commercial banks and other credit institutions) Foreign banks and foreign-controlled investment banks were permitted to invest in registered corporate debt instruments such as TFcs, etc. through initial public offerings and secondary market purchases.a3
970903
(Provisions specific to commercial banks and other credit institutions) Foreign-controlled investment banks were permitted to resort to local borrowing for their working capital requirements up to 100% of their paid-in capital, reserves, etc., subject to observance of all other nonbank financial institution rules.a3
9709
A new electronic trading system took effect on September 4. 
9710
On October 15, 8.7% devaluation of the rupee/dollar exchange rate. IMF approved a $1.56 billion, three-year loan.
9711
The ambush and death of four Americans in Karachi. The Supreme Court held Prime Minister Nawaz Sharif and other government officials in contempt. The Asian Development Bank approved a 15-year loan of $250 million for capital market reforms.
9712
President Farooq Ahmad Leghari resigned.
971210
(Controls on credit operations) Parent companies of the multinational were permitted to provide loans for financing the foreign currency cost of their projects.a3
9700
Laeven's banking liberalization (FLI) dates.a13
9801
S&P and Moody's downgraded Pakistan's economy. Terrorist attack in Lahore killed two dozen of people.
9802
Political turmoil raised from the resignation of four government ministers. Political rift within Prime Minister Nawaz Sharif's coalition government, the Pakistan Muslim League.
9803
Muttahida Quami Movement threatened to break off from the government. Electric Power rates reductions. The Securities and Exchange Act was promulgated.
9805
The nuclear tests conducted by India and Pakistan, causing economic sanctions imposed the U.S. and Japan.
980529
(Provisions specific to commercial banks and other credit institutions) Lending to nonresidents was liberalized.a3
9806
S&P downgraded Pakistan Telecom's 1997 receivables certificates. 
980709
Foreign bank branches in Pakistan and foreign-controlled investment banks were permitted to make investments in registered listed corporate debt instruments in the primary and secondary markets.a3
980713
(Controls on credit operations) The facility of premature payment of usance bills was withdrawn.a3
980721
(Provisions specific to commercial banks and other credit institutions) Banks' net open position limits are tied to their balance sheet strength and limited to a maximum of 20% of paid-up capital. Banks' nostro account limits were abolished.a3
            9808 Pakistanís Privatization Commission appointed a consortium led by Goldman Sachs International as the financial advisor for the restructuring and privatization of Pakistan Telecommunication Company. 
            980906
(Provisions specific to commercial banks and other credit institutions) Banks' nostro account limits were reimposed.a3
            9810 It was reported that president Clinton was empowered to lift post-nuclear blast economic sanctions on Pakistan and India.
            9812 The Karachi Stock Exchange (KSE) proposed to amend the existing listing regulations on the KSE. Under the new regulations, a company must have a minimum paid-up capital of Rs. 50 million ($1 million) and an existing company with a paid-up capital of at least Rs. 20 million must have at least 50% offered to the public. be posted on January 15, 1999. 
            9902 The State Bank of Pakistan decided to allow the repatriation of foreign portfolio proceeds. 
            9904 India's test of Agni missile on April 12 raised concerned that Islamabad retaliated with its own test. Opposition leader Benazir Bhutto was sentenced to five years in jail for corruption.
 
9900
In the second quarter, former President Benazir Bhutto was convicted of corruption.
990603
(Provisions specific to commercial banks and other credit institutions) Every bank/nonbank financial institution accepting foreign currency deposits must use, invest, or place them only within Pakistan.a3
991013
Prime Minister Nawaz Sharif was ousted by Army chief General Pervez Musharraf. The military leaders made known their "democratic" intentions.
9912
The government conducted massive crackdown on bank load defaulters.
200003
The local Karachi Stock Exchange Index (KSE) rose to 2000. The new government outlined plans to reform the economy, speed up privatization, and resolve the IPP issue and to allow the repatriation of funds by foreigners. Shaukat Aziz was appointed as the finance minister. U.S. President Bill Clinton visited Pakistan.
200004
The courts sentenced former Prime Minister Nawaz Sharif to life imprisonment. General Musharraf announced that a sales tax would be imposed to meet an IMF loan condition.
200005
All three exchanges suspended trading in fear of triggering widespread panic.
200009
Pakistan's rupee fell to a record low, driven by debt repayment and IMF pressure to allow the currency to adjust in order to stem the soaring current account deficit. The central bank raised interest rates by 0.01%.
200010
Two ministers resigned.
200011
The IMF approved a new loan, helping Pakistan avoid a default on US$36 billion in foreign debt.
200012
The local KSE Index hit a new 52-week low at 1209 points, forcing Karachi Stock Exchange officials to meet with the president to discuss ways to boost the market.
200103
The Pakistan Supreme Court ruled that elections were mandatory and that power should be transferred to civilians by 2002.
200104
S&P assigned a 'B+' senior unsecured debt rating to bonds issued.
200105
Pakistan's rupee reached an all time low.
200110
S&P assigned a 'B-' senior unsecured long-term foreign currency debt rating to six commercial loans to the Pakistan government. Also S&P assigned 'B+' senior unsecured long-term local currency debt rating to eight Pakistan Investment Bonds.
200112
Military tensions escalated in response to the December attack by militants on India's parliament.
011207 The International Monetary Fund (IMF) is reported to have agreed to extend a US$1.3bn credit line to Pakistan. However, agreements of the deal have not been released, pending an official announcement. A spokesperson for the IMF said that the three-year arrangement was made under the concessional terms of the Poverty Reduction and Growth Facility (PRGF). Loans under the PRGF carry an interest rate of 0.5% and a grace period on principal payments of five-and-a-half years. The IMF is believed to have authorised the immediate withdrawal of US$1.09m.
020218 Global credit ratings agency Moody's Investor Services on 15 February upgraded Pakistan's foreign-currency debt and bank deposit ratings from 'Caa1' to 'B3'. The rated foreign-currency deposits are held by the four domestic banks assessed by Moody's (Habib Bank, National Bank of Pakistan, United Bank and Muslim Commercial Bank). The ratings on Islamabad's rupee-denominated debt and outstanding eurobonds were also raised to 'B3'. In a statement, Moody's said that the upgrades reflect Pakistan's 'improved external liquidity position' in the wake of its co-operation in the US offensive against Afghanistan. Particularly highlighted was the long-term debt relief offered by the Paris Club rescheduling agreement, signed last December
020222 Daniel Pearl, the Wall Street Journal reporter who was kidnapped by Islamic extremists in Pakistan, has been confirmed dead. This high-profile and tragic killing is significant in providing a vivid illustration of the dangers that US and other Western citizens face in Pakistan. However, it will not usher in a shift in policy in either the US or Pakistan nor does it indicate a significant fluctuation in strategy by Pakistan's extremist groups, who have already made their uncompromising commitment to violence perfectly clear.
020227 The Asian Development Bank (ADB) will disburse US$1bn in loans to Pakistan in order to support capital-market reform and the progressive decentralisation of fiscal management to local governments. The assistance was announced by Marshuk Ali Shah, the ADB's country director for Pakistan. The fresh capital adds to the US$250m already disbursed to support the development of capital markets. Reforms proposed include the creation of a national clearing and settlement system, automated stock-exchange transactions and the establishment of credit rating agencies to improve information processes and transparency. Total ADB funding in 2001 amounted to US$626m. The planned increase over 2002 reflects the growing international confidence in the commitment of President General Pervez Musharraf's technocratic administration to overhauling the debt-laden economy
020315 Inflation, as measured by the consumer price index (CPI), rose by 2.85% in the first eight months of fiscal year (FY) 2001 (ending June) as compared to the same period in 2000. According to data released by the Federal Bureau of Statistics, the sensitive price indicator (SPI), which measures the impact of price increases on the lowest income brackets, rose by 3.49% in the same period, while the wholesale price index (WPI) increased by 2.22%. A breakdown of the factors that fuelled the rise in inflation was not released by the Bureau
020321 The fiscal deficit contracted to -4.9% of gross domestic product (GDP) in the first six months of the fiscal year (FY) to December 2001 as compared to -5.3% the previous year, weathering the fallout from the 11 September 2001 terror attacks on the US. However, the Central Bank issued a pessimistic outlook for the remainder of the year, warning that tensions with India could force increases in defence spending. The balance of payments recorded a historic US$1.2bn surplus in the first six months, with reserves hitting a record high as foreign aid and remittance flows revived and reverse capital flight ebbed
020508 Fourteen Dead As Karachi Suicide Attack Hits French Naval Workers
020517 World Bank (WB) President James Wolfensohn announced yesterday that the institution will lend Pakistan US$500m towards economic reform and poverty alleviation programmes. Finance Minister Shaukat Aziz acclaimed what he referred to as the WB's largest ever one-off credit following praise by Wolfensohn for President General Pervez Musharraf's reform programme. The WB President, speaking in Islamabad, expressed his desire to see faster progress on envisaged reforms in tax and public enterprise, but generally lauded Pakistan's reform undertaking. Particular acclaim went to the government's population programme and its efforts to address gender disparities in the South Asian country.
020626 Many business leaders in Pakistan were relieved today while right-wing clerics were dismayed after the Supreme Court ruled that interest-based banking is not inherently un-Islamic. The Supreme Court effectively referred the matter back for further research to the Federal Shariat Court (FSC). The FSC had passed the original verdict in 1992 that 'riba' (interest payments) were against Islamic law and consequently abolished the practice, but the ruling was challenged by United Bank Limited. When the verdict was initially confirmed in 1999, financial institutions and economists feared that if the ruling was endorsed by the supreme court, Pakistan's financial system would be cast in turmoil.
020806 Six people were killed on 5 August when gunmen opened fire at a Christian school in the town of Murree, just outside the capital, Islamabad, in what appears to have been a failed attempt to murder foreign children attending the facility
020827 On 27 August the Asian Development Bank (ADB) unveiled a three-year US$2.4bn assistance package for Pakistan, which will be used largely to finance programmes aimed at poverty reduction. Country Director Marshuk Ali Shah said that more than 60% of the total funds had been earmarked specifically for poverty reduction. The ADB asserted that improved governance was fundamental to reducing poverty, and warned that the annual disbursement of US$800m tranches of the programme would depend on clear progress towards this end. The ADB commended President Pervez Musharaff's technocratic administration for reducing corruption, and cautioned against possible backsliding should a civilian government assume power. More than 32% of Pakistan's 145m total population are estimated to be living below the poverty line. The agreement, due to start at the beginning of 2003, will be signed off in mid-September
020919 Pakistani police have arrested Ramzi Bin al-Shibh, a suspected key figure behind the World Trade Center bombings on 11 September 2001, and a prospective al-Qaida leader
020927 The government of General Pervez Musharraf has implemented an important move towards economic reform, having passed into law a legal framework for the independence of the country's central bank. According to the new legislation, the State Bank of Pakistan will enjoy autonomy in its monetary, credit and exchange-rate policies. Independence will also allow the bank to manage without interference its foreign-exchange reserves, and, significantly to determine the scope of government borrowing from commercial banks. This reform move should contribute significantly to economic stability, as it could mark an end to the previous government practice of strong-arming the central bank into permitting borrowing from state-owned commercial banks to meet fiscal deficits.
021018 The five-party Muttahida Majlis-e-Amal (MMA) coalition of Islamic parties, which surfaced as the country's third-largest political force in the 10 October elections, has insisted that it will adhere to economic reform and will honour international commitments. Speaking to the BBC, Qazi Hussain Ahmed, leader of Jamat-e-Islami - a member of the alliance - asserted that the coalition wanted foreign capital to flow in to Pakistan, not out, requiring the creation of an investor-friendly environment. The lack of a clear economic agenda from the AMA has raised concern about the group's position on key relations with the IMF and non-Islamic financing systems.
021118 The Central Bank of Pakistan cut its leading discount rate to 7.5% from 9.0% on Saturday, in a move calculated to boost credit demand. The new rate will also be applied to the bank's three-day repo facility offered against government treasury bills and state investment bonds. The deeper-than-expected cut was facilitated by subdued inflation and the adherence of the government to budget deficit targets. Commercial lending rates are now set to fall from the current average of 11%, bringing single digit rates - a benchmark for the economy's developing macro-economic stability - ever closer
021212 Legislators in the southern province of Sindh were today sworn in after weeks of political bargaining following elections on 10 October. Like the federal government, it looks to be an unstable coalition, which will compromise its effectiveness. The ethnic Muttahida Qaumi Movement (MQM) initially refused to support the pro-military Pakistan Muslim League-Quaid (PML-Q), but has since reversed this policy, instead joining it to form a government without the participation of the party that won the largest bloc in the assembly, former Prime Minister Benazir Bhutto's Pakistan People's Party (PPP). PML-Q member Ali Mohammad Maher is expected to be elected as Chief Minister under a deal brokered yesterday by Prime Minister Zafarullah Jamali.
021213 Pakistan may return to international bond markets for the first time since 1997, after US credit-rating agency Standard & Poor's (S&P) upgraded the country's sovereign debt rating from 'B-' to 'B'.
030114 Exports expanded by an annualised 16% in the first six months of FY2002/2003, remaining on course to break the US$10bn by year-end in June. In the period July-December exports totalled US$5.167bn against US44.457bn in the same period a year ago. Momentum was injected by a strong performance posted by textile sectors, which account for more than 60% of total exports. Total textile exports weighed in at US$3.31bn in the half-year period, compared to US$2.85 in the same period last year, spurred by recovering demand in the European Union (EU). In January the EU removed all tariffs on all garment imports from Pakistan and increased quotas for all textile products by 15%. The government has set a US$10.4bn target for exports in FY2002-2003 against the total US$9.1bn recorded in FY2001
030310 Foreign-exchange reserves have broken the US$10bn mark for the first time ever, the Finance Ministry has reported. Gross reserves were recorded at US$10.154bn as of 7 March, the equivalent of 11 months. Pakistan's formerly-parlous reserve position has been reversed by a surge in remittances, recovering exports and the resumption of multilateral funding. The global crackdown on money laundering has prompted expatriate Pakistanis increasingly to remit capital using official banking channels. The firming of Pakistan's external balance prompted US agency Standard & Poor's to raise Pakistan's sovereign credit rating from 'B+' to 'BB-'
030331 Pakistan has secured a US$4.5bn debt rescheduling agreement with Japan. The total rescheduled consists of around US$4.0bn overseas development aid (ODA), or official loans, with around US$500m in outstanding commercial debt also rescheduled. The deal covers all of Pakistan's outstanding debt to Japan. The agreement also represents a major step forward in terms of fulfilling the provisions of the US$12.5bn debt restructuring deal secured with the Paris Club in December 2001
030401 US Imposes Sanctions on Pakistani Firm Over Alleged Nuclear Links with North Korea
030407 US officials announced on 5 April that the US government had waived debt worth US$1bn that was owed by Pakistan. US President George W Bush offered the debt write-off in February 2002 as part of a reward package for Pakistan's co-operation in the US-led military campaign in Afghanistan. US Ambassador Nancy Powell said that the move was 'just one piece of a multi-faceted, multi-billion dollar assistance package the US is providing to Pakistan'. It follows similar moves in late 2001, when the US rescheduled US$3bn-worth of Pakistan's foreign debt (which stood at US$38.5bn) and supported a further rescheduling of US$9bn by the International Monetary Fund (IMF). The write-off, however, appears to be at odds with the limited sanctions policy that the US recently imposed on Pakistan for its nuclear dealings with North Korea
030430 Central bank governor Ishrat Husain confirmed yesterday that authorities will seek to retire US$5bn of non-concessional debt owed to multilateral institutions, including the International Monetary Fund (IMF) and the World Bank. Husain said that surging foreign exchange flows could be used to retire the debt without impacting on recovering reserve levels. The State Bank of Pakistan's foreign exchange reserves have soared to a record high of US$10.3bn, buoyed by remittances and resumption of international loans. At the end of FY2002, Pakistan owed US$14.3bn in outstanding medium and long-term credit to multilateral creditors, the bulk of which was on low-servicing concessional terms. However, the minority non-concessional debt carries high interest rates of 6-7%, compared to just 0.75% on soft loans. Husain asserted that the multi-year framework for retiring the debt would be predicated on maintaining a reserve/import ratio of at least 11 months.
030617 Ahead of a two-week tour to the West, President Pervez Musharraf has sought to clarify his position. In an interview with the Gulf News newspaper, Musharraf argued that it was necessary for him to retain considerable power because he feels that Pakistan is not ready for democracy. Having criticised the 11 years of civilian rule that preceded the military's take-over in 1999 as 'sham democracy', Musharraf added, 'our democracy is not mature...and I think many politicians do not behave in a mature manner' - an obvious reference to the current opposition protest campaign. He has said that until the country becomes more democratically mature, he will continue to hold onto his post as President, as well as being chief of the armed forces.
030625 During talks with President Pervez Musharraf at Camp David (US) yesterday, US President George W Bush praised his Pakistani counterpart, and agreed a US$3bn aid package. The talks had been much anticipated, and are an integral part of Musharraf's current four-nation tour. As expected, however, the package is not guaranteed, and instead rests on a number of issues being successfully resolved and targets met. Furthermore, Musharraf failed to secure the release of 28 F-16 fighter jets, which Pakistan ordered before the US imposed sanctions on the country in 1998 following nuclear testing. Bush argued that the US had reimbursed the country for the loss of the jets, and instead offered to consider other sales. The aid package, which Bush has promised to draw up and present to Congress, remains the key feature.
030801 Foreign exchange reserves rose to US$11.09bn at the end of July, marking a new record high, the State Bank of Pakistan reported today. Income was boosted by a regular quarterly US$256m grant from the US to support anti-terrorist efforts. Concurrently, direct holdings stood at US$9.8bn
030812 The central State Bank of Pakistan has bought a US$25m share in a US$400m Islamic Development Bond, marking its first investment of foreign exchange earnings in commercial debt markets. The transaction was lead-managed by US investment bank Citigroup. The bond, launched on 29 July, will mature on 12 August 2008. Other central banks participating include those of Saudi Arabia, the United Arab Emirates and Malaysia
030901 The central State Bank of Pakistan announced on 29 August that it will begin issuing short-term certificates of deposit (CDs) to mop up high levels of excess liquidity in the financial system. The paper, due for launch later this month, will be issued in one-month maturities.
031014 Finance Minister Shaukat Aziz confirmed yesterday that US$1.078bn of outstanding debts to the World Bank and Asian Development Bank (ADB) would be paid ahead of schedule. Targeted for prepayment are seven ADB loans, totalling US$596.7m and falling due 2007-2019 with interest rates ranging up to 11%, and US$481.7m of World Bank loans, maturing 2005-2013 with interest rates of 4.6%-7.6%
031230 Legislators yesterday approved a series of controversial amendments that President Pervez Musharraf made to the Constitution before elections in October 2002, paving the way for an end to the long-running political stand-off that has brought parliamentary proceedings to a standstill.
040102 The Finance Ministry announced yesterday that interest rates on national-savings schemes (NNS) have been lowered by between 0.5% and 0.6%, in accordance with policy set in conjunction with the International Monetary Fund (IMF). The rate on 10-year certificates was lowered by 50 basis points to 8.0% from 8.5%; to 7.0% from 7.6% for five-year papers; and to 7.2% from 7.7% for three-year rates
040129 The government of Pakistan has proposed a framework for co-operation over tax matters between the members of the Economic Co-operation Organisation (ECO). ECO was created in 1985, with Pakistan a founder member along with Iran and Turkey. A number of other states have subsequently joined, including Afghanistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. According to local newspaper Dawn, the proposals are expected to be discussed at the forthcoming meeting of ECO finance ministers, which is being held on 29-30 January.
040309 The authorities today tested an intermediate range surface-to-surface missile. The move comes at a time when Pakistan is pursuing enhanced bilateral relations with India and comes on the eve of the highly symbolic Indian cricket tour of Pakistan - the first in 14 years. The missile, the first domestically produced Shaheen II, is nuclear capable and has a range of 2,000km, which makes it able to strike deep into Indian territory. The test had been expected after a foreign office spokesman announced yesterday that one was scheduled, but it has still drawn criticism, with Japan describing it as a 'regrettable' move.
040529 Twin Car Bomb Attacks Raise Fears of Renewed Anti-Western Terrorism in Pakistan One person was killed and more than 30 others injured yesterday, during twin car bomb attacks near the US Consulate in the southern port city of Karachi.
040614 During a series of weekend operations in the southern port city of Karachi, the security forces captured nine al-Qaida operatives, including the nephew of Khaled Sheikh Mohammad, who was arrested in Rawalpindi in March 2003.
 
Year
Regulations on Foreign Investors
1998

Restrictions: Arms, security and currency printing, explosives, and radioactive materials are restricted if the promoter of the project is a foreigner. SBP approval is necessary for corporate securities other than shares, shares of unlisted companies, and new share issues from unlisted companies.

Taxation: 15% dividend tax plus 10% surcharge if dividend income exceeds Rs 100,000. Unlisted securities are taxed at a reduced rate of 27.5% when shares are held for longer than 12 months. Foreign companies pay tax at an effective rate of 55%.a6

1999

Restrictions: No limit on foreign ownership except for the defense and telecom industries.

Taxation: No change.a7

Last updated on 7/21/04 by Jerome Mo, Duke University

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Restrictions: Arms, security and currency printing, explosives, and radioactive materials are restricted if the promoter of the project is a foreigner. SBP approval is necessary for corporate securities other than shares, shares of unlisted companies, and new share issues from unlisted companies.

Taxation: 15% dividend tax plus 10% surcharge if dividend income exceeds Rs 100,000. Unlisted securities are taxed at a reduced rate of 27.5% when shares are held for longer than 12 months. Foreign companies pay tax at an effective rate of 55%.a6

1999

Restrictions: No limit on foreign ownership except for the defense and telecom industries.

Taxation: No change.a7

Last updated on 7/21/04 by Jerome Mo, Duke University