Foreign Investment in Pakistan

Foreign Investment in Pakistan by foreign bodies or individuals is allowed in all business sectors including manufacturing, trading and services with 100% complete authority and without bringing on board local investors/ stakeholders. Pakistan has had a liberal investment regime in terms of legal protection and sectors open to investment. Moreover, profit or capital remittance shifts are made without any stipulations by routing the same from scheduled commercial banks in Pakistan without repeated approval from State Bank of Pakistan. Moreover the only restricted industries for foreign investments include arms and munitions, high explosives, radioactive substances, securities, currency and mint, and consumable alcohol.
Why to make Foreign Investment in Pakistan?

  • Liberal Foreign Investment Policy
  • Cheaper Labour
  • Cheaper Utility
  • No minimum capital requirement
  • Low tax rates (Income Tax Etc.)
  • Larger domain
  • Reliable route for Import and Export
  • Tax exemptions in several Sector
  • Liberal Policy on Repatriation
  • 100% foreign ownership
  • Foreign Investors having equal protection as compared to Local Investors
  • Convenient long term loan facilities for business

What are the Major Laws governing Foreign Investment in Pakistan?

Foreign Investors have been promised legal protection under the following major laws in view of the liberal Foreign Investment policy of Pakistan:

  • Foreign Exchange Regulation Act, 1947,
  • the Foreign Investment Protection and Promotion Act, 1976
  • the Protection of Economic Reforms Act, 1992
  • Companies Ordinance, 1984
  • Income Tax Ordinance, 2002

Procedure for Foreign Investment and feasibility

we at Hamza and Hamza provide successful legal and consultation services in order for our client to make foreign investment in all sectors of business including manufacturing, trading or Services allowed by the Government of Pakistan. We have till today rendered legal services in following sub-sectors:

  • IT projects
  • CPEC related projects
  • Development projects
  • Manufacturing projects
  • Services related projects
  • Textile projects
  • Food industry projects
  • Construction projects
  • Health Projects
  • Auto-part related projects
  • Import and Export projects

If you are keen to invest in Pakistan than our panel of experts are available to assist you in ensuring great benefit with legal cover for you and your foreign investment.

Foreign Investment

Foreign Investment also referred to as Foreign Direct Investment(FDI) means a business investment by one country to another. Purpose of FDI is for either establishing business operations or acquiring business assets in another country, for example ownership or controlling interest in a foreign company.
It usually entails Joint-Venture, contribution in business, mergers and foreign partnership in business management.

Generally there are two types of FDI:

  1. Inward foreign direct investment:   A common type of FDI in which a foreign company tends to invest in an already established company to elevate and improvise its inflows. Same is done either by purchasing an already established company or otherwise by establishing new operations in existing business.
  2. Outward foreign direct investment:   A Type of FDI in which a local company or individual invests in foreign companies by way of merger or acquisition or/and expansion of existing foreign company.

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