Pak­istan’s in­vest­ment po­ten­tial

Enterprise - - Contents -

Pak­istan has been rec­og­nized as a re­ward­ing in­vest­ment des­ti­na­tion since it is termed as an ex­cel­lent plat­form for launch­ing new in­vest­ments as well as for the growth of ear­lier suc­cess­ful in­vest­ments, both for lo­cal and for­eign in­vestors. The con­ve­nience of­fered by Pak­istan for in­vest­ment has played a ma­jor role in its eco­nomic re­cov­ery. This is mainly at­trib­uted to the gov­ern­ment’s com­mit­ment to en­sure that the coun­try of­fers most at­trac­tive fea­tures of ease of do­ing busi­ness to the en­trepreneurs.

Pak­istan to­day is a mod­er­ately grow­ing econ­omy at 3.5 to 4 per­cent, with an­nual ex­ports worth $25 bil­lion and an im­prov­ing law and or­der sit­u­a­tion. The in­fla­tion rate seems to be in check and the trade bod­ies and all dy­namic fi­nan­cial in­sti­tu­tions of the coun­try are col­lab­o­rat­ing to ex­plore new busi­ness op­por­tu­ni­ties which would go a long way in bring­ing about the much-needed turn­around in the econ­omy. The coun­try’s lo­ca­tion in the heart of Asia pro­vides a gate­way for busi­nesses look­ing to ex­pand into the Mid­dle Eastern and Cen­tral Asian mar­kets.

Pak­istan has the most lib­eral in­vest­ment pol­icy in the South Asia re­gion. More so, the gov­ern­ment has en­acted an ex­ten­sive set of in­vest­ment in­cen­tives, in­clud­ing credit fa­cil­i­ties, fis­cal fa­cil­i­ties and visa pol­icy. For­eign­con­trolled man­u­fac­tur­ing com­pa­nies ex­port­ing 50 per­cent or more of their pro­duc­tion can now bor­row work­ing cap­i­tal with­out any limit. Other for­eign-con­trolled man­u­fac­tur­ing com­pa­nies, in­clud­ing those not ex­port­ing and sell­ing in the do­mes­tic mar­ket, can bor­row ru­pee loans equal to their eq­uity with­out prior per­mis­sion of the SBP whose per­mis­sion is also not re­quired for rais­ing do­mes­tic credit to meet fixed in­vest­ment re­quire­ment. • 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 goods. In case of doubt the in­vestor is in­vited to con­sult the BOI. • En­hanced FYA from 50 per­cent to 75 per­cent of PME for in­fra­struc­ture and agri­cul­ture projects. • The im­port tar­iff on agri­cul­ture ma­chin­ery (not man­u­fac­tured locally) for reg­is­tered cor­po­rate agri­cul­tural projects will be ze­rorated. • The in­vestors who in­vest in the newly opened sec­tors can im­port plant, ma­chin­ery and equip­ment (not man­u­fac­tured locally) at con­ces­sional rate of cus­toms duty which is 10 per­cent and also avail first year al­lowance at 50 per­cent of the cost of plant, ma­chin­ery and equip­ment. • Zero im­port du­ties on raw ma­te­ri­als used in the pro­duc­tion of ex­ports.

Spe­cial as­pects of in­vest­ment in Pak­istan

1. Abun­dant Land and Nat­u­ral Re­sources • Ex­ten­sive agri­cul­tural land • Crops - 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 Asian Re­publics

• Strong and long-stand­ing links with the Mid­dle East and South Asia

• Com­pre­hen­sive duty-free fa­cil­i­ties for in­vestors ◆

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