RESTRICTED
WORLD TRADE GATS/SC/67/Suppl.1
28July1995
ORGANIZATION
(95-2225)
Trade inServices
PAKISTAN
Schedule ofSpecific Commitments
Supplement 1
(This isauthentic inEnglish only)
____________________
This textreplaces theFinancial Services section contained inpages 10to14of
document GATS/SC/67.PAKISTAN -SCHEDULE OFSPECIFIC COMMITMENTS
Modes ofsupply: (1)Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
FINANCIAL SERVICES
A.Insurance and
insurance-related
services:
Insurance: Life
insurance
(CPC No.81211)(1)Unbound
(2)Unbound(1)Unbound
(2)Unbound
(3)Maximum of25percentofforeign
shareholding inexisting lifeinsurance
companies.
Foreign equity innewlifeinsurance
companies permitted upto51per
cent.(3)Unbound
(4)Unbound except asindicated under
horizontal measures.(4)Unbound except asindicated under
horizontal measures.
Reinsurance services
Reinsurance services
andretrocession
(CPC No.81299)(1)Unbound
(2)None
(3)Unbound(1)Unbound
(2)None
(3)Unbound
(4)Unbound except asindicated under
horizontal measures.(4)Unbound except asindicated under
horizontal measures.
GATS/SC/67/Suppl.1
Page1PAKISTAN (continued) GATS/SC/67/Suppl.1
Page2
Modes ofsupply: (1)Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
B.Financial services
(excluding insurance)
I.Banking (1)Unbound (1)Unbound
(a)Acceptance ofdeposits
andother repayable
funds from thepublic
(b)Lending ofalltypes
including consumer
credit, mortgage,
factoring, credit and
financing of
commercial transaction
(c)Allpayment andmoney
transmission services
including traveller
cheques andbankers '
draft(butexcluding
credit, charge, and
debit cards)
(d)Guarantees and
commitments(2)Unbound
(3)(i)Foreign banks/financial
institutions permitted toaccept
deposits andother repayable
funds from public through
incorporating alocalpublic
limited company withforeign
equity ownership notexceeding
50percent. Aforeign
bank/financial institution orits
holding company willbe
permitted tosetuponlyonelocal
subsidiary.
(ii)Prior permission inwriting ofthe
central bankwillberequired by
anyperson forholding beneficial
ownership of5percentormore
ofthepaid-up capital ofany
bank/financial institution.(2)Unbound
(3)(i)Foreign banks andfinancial
institutions controlling
management ofalocally
incorporated subsidiary required
toretain theirshareholding in
theirname foraminimum
period of10years, whereafter
shares canbetransferred after
taking prior permission in
writing from thecentral bank.
(ii)Lending bybanks tocompanies
controlled bynon-residents is
subject totheborrowing
entitlements oftheforeign
companies asdetermined by
foreign exchange rules
applicable from timetotime.PAKISTAN (continued)
Modes ofsupply: (1)Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(e)Trading, forown
account only, of:
-money market
instruments;
-foreign exchange;
-transferable
securities;
-other negotiable
instruments.
(f)Participation inissues
ofallkinds ofsecurities
including onlypublic
underwriting and
placement asagent and
provision ofservices
related tosuchissues
(g)Money broking
(h)Settlement andclearing
services fornegotiable
instruments (cheques,
billsandpromissory
notes only)(iii)Representation offoreign
nationals ontheBoard of
Directors willbeallowed in
proportion totheirshareholding.
(iv)Foreign banks presently
operating inPakistan willbe
given adequate time-frame to
convert theirbranches into
locally-incorporated subsidiaries.
(v)Banks incorporated inPakistan
permitted toundertake all
payment andmoney transmission
services.
Theissue, saleandpurchase of
foreign currency andtraveller
cheques isallowed tocommercial
banks licensed asAuthorized
Dealers.
Locally-incorporated
joint-venture companies with
foreign institution 'sshareholding
notexceeding 50percentofthe
totalpaid-up capital, granted
licence toundertake saleand
purchase offoreign currency
andtraveller cheques.
GATS/SC/67/Suppl.1
Page3PAKISTAN (continued) GATS/SC/67/Suppl.1
Page4
Modes ofsupply: (1)Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
Transmission ofpermissible
funds including foreign currency
canbeeffected onlythrough
authorized banking channels.
(vi)Nolimitation onbanks
incorporated inPakistan in
respect ofguarantees and
commitments enforceable in
Pakistan.
Guarantees andcommitments in
foreign currency andthose
undertaken infavour oronbehalf
ofnon-residents tobegoverned
byforeign exchange laws.
(vii)Only banks including investment
banks incorporated inPakistan
permitted toarrange and
participate inanypublic issue
andunderwriting ofsecurities up
to30percentofthetotal
paid-up capital oftheissuer or
30percentoftheirrespective
paid-up capital whichever isless.
(viii) Only commercial banks
incorporated inPakistan allowed
tooperate incallmoney market.PAKISTAN (continued)
Modes ofsupply: (1)Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(ix)Allcommercial banks are
required tobemembers ofthe
clearing system operated by
central banktoeffect inter-bank
settlements.
(4)Unbound except asindicated under
horizontal measures.(4)Unbound except asindicated under
horizontal measures.
II.Leasing (1)Unbound (1)Unbound
(2)Unbound (2)Unbound
(3)Foreign leasing companies willbe
permitted tosetupsubsidiary leasing
companies inPakistan with
shareholding notexceeding 51per
centofthetotalcapital toundertake
operational leasing including
cross-border leasing. Resource
mobilization from thedomestic market
tobegoverned bythesame rules and
regulations asapplicable todomestic
mobilization ofresources.(3)None
(4)Unbound except asindicated under
horizontal measures.(4)Unbound except asindicated under
horizontal measures.
GATS/SC/67/Suppl.1
Page5PAKISTAN (continued) GATS/SC/67/Suppl.1
Page6
Modes ofsupply: (1)Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
III.Asset Management: the
following only:
(a)Cash orportfolio
management;
(b)Allforms of
collective
investment
management; and
(c)Custodial and
depository
services.(1)Unbound
(2)Unbound
(3)(i)Banks incorporated inPakistan
canundertake portfolio
management services through
theirlocally-incorporated
subsidiaries setupforthe
purpose withshareholding in
suchsubsidiaries nottoexceed
51percent.
(ii)Management offoreign currency
assets willbegoverned bythe
foreign exchange regulations
applicable from timetotime.(1)Unbound
(2)Unbound
(3)None
(4)Unbound except asindicated under
horizontal measures.(4)Unbound except asindicated under
horizontal measures.
IV.Financial and
investment advisory
services(1)Unbound
(2)Unbound(1)Unbound
(2)UnboundPAKISTAN (continued)
Modes ofsupply: (1)Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence ofnatural persons
Sector orsubsector Limitations onmarket access Limitations onnational treatment Additional commitments
(3)Banks incorporated inPakistan willbe
permitted toundertake financial and
advisory services through subsidiary
companies setupforthispurpose with
shareholding upto100percent
provided thattransactions
undertaken/services provided bysuch
subsidiaries donotcreate any
financial obligations whether
contingent orotherwise onthebalance
sheet oftheholding company or
otherwise.(3)None
(4)Unbound except asindicated under
horizontal measures.(4)Unbound except asindicated under
horizontal measures.
GATS/SC/67/Suppl.1
Page7