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In order to facilitate the startup companies in raising financing from abroad, the State Bank of Pakistan has allowed them to avail loans as “Convertible
The State Bank of Pakistan says that in order to facilitate startups in raising financing from abroad, it has allowed them to avail loans as “convertible debt”. AFP/File
KARACHI: The State Bank of Pakistan (SBP) on Wednesday removed a major hurdle that has been hampering growth of the startup companies by allowing them to avail foreign loans as convertible debt.
The central bank said that in order to facilitate the startup companies in raising financing from abroad, it has allowed them to avail loans as “convertible debt”.
In order to borrow from foreign investors, once again, the law as it stands currently bans individuals from such borrowing, and only allows Pakistani companies to do so under very limited circumstances. It restricts the whole purpose of raising convertible debt for a startup, since the point is to get money fast from existing investors.
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