05-04-2010, 04:14 PM
For the purposes of Section 13 of the Act, the term "a person resident outside Pakistan" covers a foreign national including a foreign national of Indo-Pakistan origin as also a Pakistani holding dual nationality for the time being resident in Pakistan and a company registered in Pakistan which is controlled directly or indirectly by a person resident outside Pakistan.
Section 18(2) of the Act imposes restrictions on lendings to any company, not being a banking company, which is by any means controlled, whether directly or indirectly, by persons resident outside Pakistan. For the purposes of this section a company, which term includes a firm, branch or office of a company or firm, is deemed to be controlled directly or indirectly by persons resident outside Pakistan, if
(i) it is a branch office of a company incorporated outside Pakistan, or
(ii) in the case of partnerships, if
(a) 50% or more of the capital of the partnership is owned by foreign nationals, or
(b) the majority of the partners are foreign nationals, and
(iii) in the case of companies incorporated in Pakistan, if
(a) 50% of the shares or more are subscribed by foreign nationals, or
(b) 50% of the Directors on the Board of Directors or more, are foreign nationals. In the case of equal share-holding, a company is deemed to be a Pakistani controlled company, if its Chief Executive is a Pakistan National.
Section 18(2) of the Act imposes restrictions on lendings to any company, not being a banking company, which is by any means controlled, whether directly or indirectly, by persons resident outside Pakistan. For the purposes of this section a company, which term includes a firm, branch or office of a company or firm, is deemed to be controlled directly or indirectly by persons resident outside Pakistan, if
(i) it is a branch office of a company incorporated outside Pakistan, or
(ii) in the case of partnerships, if
(a) 50% or more of the capital of the partnership is owned by foreign nationals, or
(b) the majority of the partners are foreign nationals, and
(iii) in the case of companies incorporated in Pakistan, if
(a) 50% of the shares or more are subscribed by foreign nationals, or
(b) 50% of the Directors on the Board of Directors or more, are foreign nationals. In the case of equal share-holding, a company is deemed to be a Pakistani controlled company, if its Chief Executive is a Pakistan National.