This
brief overview explains, in very general terms, the investment policy
of the Government of Pakistan and it is only meant to be a guidance
note for those foreign investors who are interested to invest in
Pakistan . Therefore, these brief notes must only be taken as an
initial assistance and should not be misunderstood as a substitute for
thorough and professional legal advice.
Investment in Pakistan - Various Business & Services Sectors
Under the current Investment Policy of Pakistan, business and service
enterprises are divided into 3 main sectors or categories which are as
follows:
- Manufacturing or Industrial sector
- Non-Manufacturing Sector
- Other sectors
Non-Manufacturing Sector is further categorised into the following:
- Service Sector
- Infrastructure Sector, and
- Social Sector
Whereas other Sectors are categorised as:
- Tourism
- Housing and Construction
- Information Technology
The Investment Policy of Pakistan may vary vis-à-vis these different sectors.
Investment Policy of Pakistan for Manufacturing & Industrial Sector
Foreign investors are allowed to hold 100% equity of industrial
projects without permission of the Government. No Government sanction
is required for setting up any industry, in terms of field of activity,
location, and size, except for the following business sectors:
Arms and Ammunitions, High Explosives, Radioactive Substances,
Security Printing, Currency and Mint, Alcoholic beverages or liquors.
Investors are not required to obtain No Objection Certificate
(NOC) from the Provincial Governments for locating the project anywhere
in the country except in the areas that are notified as negative areas.
Investment Policy of Pakistan for Non-Manufacturing Sector
Foreign investors are allowed to hold 100% equity of non-manufacturing
projects on repatriation basis subject to the terms and conditions
indicated against each sub-category stated herein below:
Where registration of a company in Pakistan is required, for a
non-manufacturing project, intimation should be given to the State Bank
of Pakistan (SBP).
Investment in Service Sector in Pakistan
Foreign Direct Investment in a Service Sector is allowed in any
activity subject to obtaining permission, NOC or license from the
concerned agency/agencies and fulfilling the requirements of the
respective sectoral policy.
Foreign investors may hold 100% equity allowed on repatriation basis
and the minimum amount of foreign equity investment in the project
shall be 0.15 million dollars.
Investment in Infrastructure Sector in Pakistan
Foreign Direct Investment in an infrastructure sector is allowed for
infrastructure projects which may include development of an Industrial
Zone(s).
Foreign investors may hold 100% equity allowed on repatriation basis
and the minimum amount of foreign equity investment in the project
shall be 0.30 million dollars.
Investment in Social Sector in Pakistan
Foreign Direct Investment in the social sector is allowed in the following fields:
Education, Technical/Vocational Training, Human Resource Development (HRD), Hospitals, Medical and Diagnostic Services.
Foreign investors may hold 100% equity allowed on repatriation basis
and the minimum amount of foreign equity investment in the project
shall be 0.30 million dollars.