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 ParametersManufacturing SectorNon-Manufacturing Sectors
AgricultureInfrastructure & SocialServices including IT & Telecom Services
Govt. PermissionNot required except 4 specified industries *Not required except specific licenses from concerned agencies.
Remittance of capital, profits, dividends, etc.AllowedAllowedAllowedAllowed
Upper Limit of foreign equity allowed100%100%100%100%
Customs duty on import of PME5%0%5%0-5%
Tax relief (IDA, % of PME cost)25%25%25%25%
Royalty & Technical FeeNo 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

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