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The State Bank of Pakistan has presented a piece of good news to the startup companies and allowed them to take foreign loans as convertible debts. The financing services from abroad can be availed now which will facilitate the establishment of startups.
The law has banned individuals to take loans from foreign investors and only allows companies to borrow under some strict terms and conditions.
According to the previous instructions for finances, startups can raise their funds from foreign countries but they must follow the parameters that have been defined in the Foreign Exchange Manual (FEM) but they were not provided convertibility loan option to equity.