Islamabad, Jan 24: The Pakistan Tax Bar Association (PTBA) has raised concerns with the Interior Minister regarding the federal government’s rejection of security clearance applications for foreign investors.
As per the Companies Regulations, 2024, foreign subscribers and directors are mandated to obtain security clearances by submitting various documents, including the GR-Performa and an undertaking, through the Securities and Exchange Commission of Pakistan (SECP) to the Ministry of Interior.
The PTBA highlighted that companies generally proceed with investments, establish their offices, and set up factories after incorporation.
However, the recent rejections by SECP have been a setback.
foreign investors security clearance denials for foreign subscribers and directors are causing significant operational disruptions, and companies are facing unnecessary hurdles in advancing their businesses.
Such actions, according to PTBA, are sending a damaging signal to international investors, making them wary of Pakistan as a potential business destination. These rejections not only hinder business growth but also go against the government’s stated objective of attracting foreign investment.
Foreign direct investment (FDI) plays a crucial role in the economic development of a country. By discouraging foreign investors through bureaucratic obstacles like security clearance denials, the government risks sending the wrong message about its commitment to creating a business-friendly environment.
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PTBA has urged the Interior Minister to address this issue promptly and provide a resolution that allows foreign investors to proceed with their ventures without unnecessary delays. If Pakistan hopes to remain competitive in attracting international investment, it is essential that the process for securing approval is streamlined and fair. The PTBA’s call for swift intervention reflects the urgency of the situation, as foreign investment is critical to Pakistan’s economic growth and development.
