What incentives exist for foreign investors?
Pakistan has the most liberal investment policy in the South Asia region New incentives and further liberalization measures include:
- Reducing minimum foreign equity from US$ 0.5 million to US$ 0.3 million.
- Remittance of royalty, technology and franchise fee allowed to projects in social, service, infrastructure, agriculture and international chains food franchise.
- Zero import duties on capital goods, plant and machinery and equipment not manufactured locally. CBR can supply a list of locally manufactured good. In case of doubt the investor is invited to consult the BOI.
- Enhanced FYA from 50% to 75% of PME for infrastructure and agriculture projects.
- The import tariff on agriculture machinery (not manufactured locally) for registered corporate agricultural projects will be zero-rated.
- The investors who invest in the newly opened sectors can import plant, machinery & equipment (not manufactured locally) at concessional rate of customs duty which is 10% and also avail first year allowance @ of 50% of the cost of plant, machinery & equipment.
- Zero import duties on raw materials used in the production of exports.
Five Reasons to Invest in Pakistan (among many others!!)
1. Abundant Land and Natural Resources
- Extensive agricultural land
- Crop production (wheat, cotton, rice, fruit and vegetables)
- Mineral reserves (coal, crude oil, natural gas, copper, iron ore, gypsum, etc.)
- Fisheries and livestock production
2. Strong Human Resources
- English speaking work force
- Cost-effective managers and technical workers
3. Large and Growing Domestic Market
- 160 million consumers with growing incomes
- A growing middle-class moving to sophisticated consumption habits
4. Well-Established Infrastructure and Legal Systems
- Comprehensive road, rail and sea links
- Good quality telecommunications and IT services
- Modern company laws
- Long-standing corporate culture
5. Strategic Location as a Regional Hub
- Principal gateway to the Central Asia Republics
- Strong and long-standing links with the Middle East and South Asia
- Comprehensive duty-free facilities for investors
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