Investing in Pakistan
Pakistan offers one of the most liberal investment regimes in the world. Facilitation for investors’ confidence and providing conducive environment to attract local and foreign investment is its cornerstone. The key features of Pakistan’s investment regime are as shown in the table below:
|Policy Parameters||Manufacturing Sector||Non-Manufacturing Sectors|
|Agriculture||Infrastructure & Social||Services including IT & Telecom Services|
|Govt. Permission||Not required except 4 specified industries *||Not required except specific licenses from concerned agencies.|
|Remittance of capital, profits, dividends, etc.||Allowed||Allowed||Allowed||Allowed|
|Upper Limit of foreign equity allowed||100%||100%||100%||100%|
|Customs duty on import of PME||5%||0%||5%||0-5%|
|Tax relief (IDA, % of PME cost)||25%||25%||25%||25%|
|Royalty & Technical Fee||No restriction for payment of royalty & technical fee.||Allowed as per guidelines – Initial lump-sum upto $100,000 – Max Rate 5% of net sales – Initial period 5 years|
* SPECIFIED INDUSTRIES
- Arms and ammunitions
- High Explosives.
- Radioactive substances
- Security Printing, Currency and Mint.
- No new unit for the manufacturing of alcohol, except, industrial alcohol ** Only for CAF (Corporate Agriculture Farming)
PME = Plant, Machinery and Equipment
IDA = Initial Depreciation Allowance
The Government of Pakistan has updated its policy regarding ‘Gifting of Vechicles under Import of Vehicle Policy.’ For more details please click here.