Short Term Investment Agreement Template for Pakistan

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Key Requirements PROMPT example:

Short Term Investment Agreement

"I need a Short Term Investment Agreement for a 500,000 USD investment from a Dubai-based venture capital firm into my Pakistani technology startup, with the investment period running from March 2025 to December 2025, including Shariah-compliant terms and foreign currency provisions."

Document background
The Short Term Investment Agreement is designed for use in Pakistan when parties seek to establish a formal arrangement for temporary investment of capital, typically ranging from 3 months to 2 years. This document is essential in situations where investors (both local and foreign) wish to make short-term investments in Pakistani businesses while ensuring legal protection and regulatory compliance. The agreement incorporates all necessary elements required under Pakistani law, including compliance with the Foreign Private Investment (Promotion & Protection) Act, 1976, the Companies Act 2017, and relevant State Bank of Pakistan regulations. It is particularly useful for businesses seeking working capital, project financing, or bridge funding, and includes comprehensive provisions for investment terms, returns, security, and risk mitigation measures.
Suggested Sections

1. Parties: Identification of the investor and investee with full legal names and addresses

2. Background: Context of the investment and brief description of the parties' intentions

3. Definitions: Key terms used throughout the agreement defined for clarity

4. Investment Amount: Specification of the investment amount, currency, and payment terms

5. Investment Period: Duration of the investment and key dates including commencement and maturity

6. Returns and Profit Sharing: Details of expected returns, calculation method, and payment schedule

7. Security and Collateral: Details of any security or collateral provided against the investment

8. Representations and Warranties: Standard declarations by both parties about their capacity and authority

9. Covenants: Ongoing obligations of both parties during the investment period

10. Events of Default: Circumstances that constitute default and their consequences

11. Termination: Conditions and process for early termination

12. Governing Law and Jurisdiction: Specification of Pakistani law and relevant jurisdiction

13. Notices: Process and addresses for formal communications between parties

14. Execution: Signature blocks and execution formalities

Optional Sections

1. Regulatory Compliance: Additional section when dealing with regulated industries or foreign investors

2. Tax Provisions: Detailed tax arrangements when complex tax structures are involved

3. Foreign Exchange Provisions: Required when investment involves foreign currency transactions

4. Assignment: Include when transfer of investment rights needs to be addressed

5. Confidentiality: Detailed confidentiality terms for sensitive investments

6. Force Majeure: Protection against unforeseen events, particularly relevant in volatile markets

7. Anti-Money Laundering: Required for compliance with AML regulations, especially with foreign investors

8. Shariah Compliance: Required when investment needs to comply with Islamic banking principles

Suggested Schedules

1. Schedule 1 - Investment Details: Detailed breakdown of investment amount, payment schedule, and bank details

2. Schedule 2 - Return Calculations: Formula and examples of return calculations

3. Schedule 3 - Security Details: Detailed description of any security or collateral provided

4. Schedule 4 - Conditions Precedent: List of conditions to be satisfied before investment becomes effective

5. Appendix A - Required Documents: List of supporting documents required from both parties

6. Appendix B - Compliance Certificates: Format of compliance certificates to be provided during the investment period

7. Appendix C - Form of Notices: Standard templates for various notices under the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Relevant Industries

Financial Services

Technology

Real Estate

Manufacturing

Retail

Agriculture

Healthcare

Energy

Construction

Telecommunications

E-commerce

Logistics

Islamic Banking

Small and Medium Enterprises

Relevant Teams

Legal

Finance

Treasury

Compliance

Risk Management

Corporate Affairs

Investment

Business Development

Company Secretarial

Strategic Planning

Relevant Roles

Chief Financial Officer

Investment Manager

Legal Counsel

Finance Director

Treasury Manager

Investment Analyst

Compliance Officer

Risk Manager

Corporate Lawyer

Financial Controller

Investment Banker

Business Development Manager

Managing Director

Company Secretary

Portfolio Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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