Pakistan's Outlook:

Strategically located in the heart of Asia, Pakistan is at the crossroads of the world, offering a
locational advantage to investors with opportunities within and around the country. A population of
207 million makes it the sixth largest market globally with a growing and increasingly affluent middle
class and more than half its population below the age of 30 guaranteeing a sizeable and vibrant work
force for decades to come. Pakistan offers a historical advantage in agriculture and textile, a reputed
sports industry, and a growing manufacturing and service sector. With a young, tech savvy population
it has become home to a growing IT sector and an exciting start up culture. Bordering emerging
economies of the future, Pakistan offers competitive advantage at home and access to South East Asia,
the Middle East, West Africa, and Europe through Central Asia.

Source: Asian Development Bank

01
Pakistan's economic outlook has been very positive over the past decade. Year after year, the GDP
growth rate of the country has increased as can be seen from Figure 1 below. From relatively meagre
growth rates of 2 – 3%, the country currently stands at a growth rate of approximately 5.8 % in 2018.
The target for fiscal year 2018-19 is 6.2%. This improvement in growth rate is credited to the
strengthening of the banking sector and a steadier credit flow to the private sector, a general optimism
in the realm of external trade primarily due to CPEC related development activity, an increase in the
electricity generation capacity of the country which has resulted in steadier flows of electricity to the
industrial sector, higher revenue collection levels and an improvement in infrastructure due to CPEC
projects as well as independent government schemes.

Real GDP Growth

6.0 5.79
5.5 5.3
5.0
4.5
4.5
4.1 4.1
4.0 3.8 3.7
3.6
GDP Growth %

3.5
3.0
2.6
2.5
2.0
1.5
1.0
0.5 0.4
0.0
FY-09 FY-10 FY-11 FY-12 FY-13 FY-14 FY-15 FY-16 FY-17 FY-18
Fiscal Year
Figure 1 GDP Growth Rates of Pakistan from 2009 to 2018 2

Foreign Direct Investment:

Foreign Direct Investment (FDI) has played a significant role in reducing global poverty over time
by opening up under developed economies to businesses that were otherwise outside the reach of
those countries. Pakistan has seen a sharp increase in FDI over the past decade. With the
announcement of China's plan to make Pakistan an integral part of its Belt and Road
1Deloitte
https://www2.deloitte.com/content/dam/Deloitte/pk/Documents/tax/Budget%20Highlights%20&%20Comments%202
018-19-deloittepk-noexp.pdf
2Deloitte – same as above

02
Initiative (BRI), foreign direct investment took on a new meaning for Pakistan. The $62 billion China
Pakistan Economic Corridor is being developed through multiple projects across the country, which
will significantly improve connectivity within Pakistan and allow for greater ease of access to
neighbouring trade partners. The development of Gwadar port is projected to become a trade and
logistics hub within the region opening up western China to its closest sea link to Africa and the Middle
East as well providing access to the Arabian Sea to landlocked Central Asian states.
As can be seen from the chart below, FDI into Pakistan has been directed towards multiple sectors with
the largest portion dedicated to power and construction. These two sectors are also the primary focus of
the China Pakistan Economic Corridor. In recent months, trade deals have been signed between
Pakistan and its economic partners Saudi Arabia and Malaysia. Saudi Arabia and Pakistan in March
2019 signed MoUs worth $20 billion. Half of this amount is to go towards building an oil refinery
whereas $4 billion is dedicated to Pakistan's renewable energy sector. Similarly, in the month of March
2019, Malaysia and Pakistan signed deals worth $900 million pledging cooperation in the fields of IT,
telecom, power generation, textile and agriculture.

SECTOR-WISE FDI IN PAKISTAN

FY 2017-18
Power Construction Finance Oil & Gas Exploration Food Transport Others

15%
2% 34%
5%
7%

12%

25%

3Bloomberg – Saudi Prince starts Asia trip pledging $20 billion to Pakistan
https://www.bloomberg.com/news/articles/2019-02-17/saudi-crown-prince-arrives-in-pakistan-to-sign-investment-
deals
4DAWN – Pakistan, Malaysia sign agreements for 5 'big projects' https://www.dawn.com/news/1471200

03
Foreign Investor Policies:
To encourage greater levels of Foreign Direct Investment, Pakistan has overtime maintained and also
introduced new measures friendly to foreign investors. These include general rules and regulations
that create ease of conducting business for non-local investors and a tax regime that offers attractive
incentives.
Rules concerning foreign investors:
 All sectors are open to foreign investment at all times other than a few restricted sectors
including ammunitions, explosives, radioactive substances, securities, currency, mint and alcohol.
 There is no minimum threshold for the amount of foreign equity in any sector
 Upper limits to foreign equity ownership do not exist except in the case of airline, banking,
agriculture and media.
 Repatriation facilities shall exist in accordance to Foreign Exchange Regulation Act, 1947.
Foreign investors in any sector shall at any time repatriate profits, dividends, or any other funds in
the currency of the country from which the investment was originated.
 Foreign companies must register in accordance to Companies Ordinance 2017 and if they
please to merge with a company operating in Pakistan, they must refer to Competition
Commission of Pakistan pursuant to the same Ordinance.
 Foreign investors shall be entitled to sell shares, transfer ownership, and de register under
Companies Ordinance 1984 and Banking Companies Ordinance 1962.
 Foreign investors shall have the right to exchange the local currency into any other freely
convertible foreign currency, subject to Foreign Exchange Regulations of SBP.
 There shall be no restrictions on the use of foreign private loans within three major loan
categories as defined in SBP Foreign Exchange Manual 2002 or the debt to equity ratios used to
finance the foreign investment projects. The use of the funds if received from foreign loans shall be
extended to any purpose, not limited to imported plant and machinery.
 Foreign investors in all sectors shall be allowed to access domestic borrowing subject to
prevailing rules/ regulations of SECP and SBP and observance to Debt Equity ratio.
 Foreign investors shall be entitled to lease land without limitation under the rules & regulations
of the concerned authority.
 There will be no limitation on the transfer of any land held by a foreign investor unless
contractually specified in an agreement between the land holder and subject to federal or
provincial regulations.

5Board of Investment (Islamabad)

04
 In case arbitration is required on any matter, the Commercial Arbitration Act, 2011 exists and
can be used by investors who would like to reach out to higher courts.
 Visa assistance:
o Pakistan Missions abroad are authorized to grant up to five year (multiple entry) visas
within 24 hours to businessmen of 69 countries on the Business Visa List (BVL), with the
duration of each stay restricted to three months on production of required documentation.
Allowed documentation will be expanded to include invitation from Pakistani companies,
BOI, or Provincial IPAs.
o Visa-On-Arrival for a 30 day validity period will be given to the businessmen of 69
countries on the Business Visa List (BVL) mentioned above, upon production of any of the
documents needed by Missions for businessmen.
o Pakistan Missions abroad are also authorized to grant Work Visas to foreign technical
and managerial personnel as defined by BOI for the purpose of imparting technical know-how
and skills to the local population. The duration of this work visa is one year and is extendable
on a yearly basis. As per Visa Policy cases of grant or extension of Work Visas and conversion
of Business Visas to Work Visas are processed within 4 weeks by BOI.
 Pakistan has Bilateral Investment Treaties with 47 countries and an agreement on Avoidance of
Double Taxation with 52 countries.

Pakistan corporate tax regime and incentives:

The Government of Pakistan is looking to encourage business inside the country and much of the tax
incentives it provides aim to increase economic activity within the country and attract foreign
investors to its shores. Keeping this in mind, the government has announced a new tax regime
whereby starting from 2019 until 2023 and onwards, the corporate tax rates for companies
will see a yearly reduction as per the following table:
Federal corporate tax rates on taxable income (2018)

Company type Tax rate %

Banking company 35
Public company other than banking company 30
Any other company 30

Small company 25 6
6Ibid

05
 Tax year Company % Small company %
2019 29 24
2020 28 23
2021 27 22
2022 26 21
2023 and onwards 25 20
Source: PWC

In addition to this step the Government of Pakistan is offering additional tax credits to investors to
encourage the growth of business within the country. These incentives include the following:
1. Plant and Machinery
A tax credit at the rate of 10% of the amount invested in plant and machinery is allowed to
companies in Pakistan; provided that the investment is made between 1st July, 2010 and 30th
June 2019 for the purpose of extension, expansion and replacement of the plant and machinery.
2. Employment
A tax credit of 2% of tax payable is available for manufacturing companies for every 50
registered employees, provided that these companies set up by July 2019. However, the
maximum tax credit shall not increase 10% of the tax payable.
3. Sales to Registered Persons
In order to encourage documentation, 3% tax credit is available to a manufacturer registered
under Sales Tax who is making over 90% sales to Registered Sales Tax Persons.
4. Enlistment
At present 20% tax credit on tax payable for enlistment in stock exchange is available for 1
year. In order to encourage enlistment of companies on stock exchange tax credit is being
extended to 2 years.
5. Establishing New Industry and Expansion of Existing Plant
A five-year tax holiday in the form of tax credit is allowed to a company setting up a new
industrial undertaking in Pakistan between 1 July 2011 to 30 June 2019. Tax credit is allowed
in proportion of the equity raised through issuance of shares against cash to total investment
with at least 70% equity.

7PWC ‐ h p://taxsummaries.pwc.com/ID/Pakistan‐Corporate‐Taxes‐on‐corporate‐income
8Investment doc

06
5 Steps to Starting a Business in Pakistan:
Obtain PIN for Company Registration
The Security and Exchange Commission of Pakistan (SECP), has launched an online registration
process that allows those concerned to provide basic information to receive a PIN needed for the
registration of their business. The customer will be required to provide their 13-digit
CNIC/NICOP/POC number (without dashes) in addition to their personal details i.e. full name,
father's/spouses name, gender, date of birth, current and permanent address, mobile number and email
address and to choose a password and security questions. Once the information is processed a PIN will
be sent to the user on their mobile number and email address.
1. Reserve name, register company, pay incorporation fees and obtain a National Tax Number
(NTN) on SECP e-portal
Services are available through SECP for completion of registration online or in person. The SECP
has launched a single online portal for user registration, name reservation, company incorporation
and notification of appointment of CEO. These services are available at:
https://eservices.secp.gov.pk/eServices
The fee for name reservation, registration and filing are all included under one payment which can be
made either online or at a bank. The payment is commonly made online. Following submission of all
documents and payment, a certificate will be made which can be sent through email or courier or
collected from the SECP office. The entrepreneur can register with any Company Registration Office,
irrespective of the jurisdiction.
2. Make a company seal:
Article 23 of the Companies Act, 2017 requires every company to have a seal upon which the name of
the company shall be engraved and legible. This seal is required to open a bank account, is requested
by counterparts and public agencies and will be included on share certificates.
3. Open a bank account for tax registration
A bank account number in the name of the company is needed in order to register for taxes. A copy of
the registration certificate is needed in order to open a bank account.
4. Register with the Labour Department of the district
Pakistan's Shops and Establishment Ordinance 1969 requires every establishment other than one-man
shops to register with the Deputy Chief Inspector of the Labour Department in its district within two
months of setting up the establishment. This is done to safeguard labour standards of the workers.
Once this registration is complete the DCI issues a registration certificate which is to be displayed at
the establishment and renewed every two years upon payment of fees.

07
 5 STEPS TO STARTING A BUSINESS IN PAKISTAN

Obtain PIN for

Company Registration

STEP Using online portal provide

their 13 digit CNIC/NICOP/POC
number in addition to personal

01 details, mobile number & email

address & choose a password/
security questions. A PIN will
be sent to the user on their
mobile number & email address.
Name reservation,
company registration,
fees, obtain NTN on

STEP SECP e-portal

Services available at:
https://eservices.secp.gov.pk/eServices

02
Fee for name reservation,
registration & iling included
under one payment online or
at a bank.
After submission of all
documents & payment, a
Make a company seal certi icate will be sent through

STEP
email or courier or collected
Develop a seal upon from SECP of ice.
which the name of the

03
company shall be
engraved and legible
( required for bank
account)
Open a bank

STEP account for tax

registration

04
A bank account number
in the name of the
company is needed in
order to register for
Register with the taxes.
Labour Department

STEP of the district

Register with the Deputy

05
Chief Inspector of Labour
Department in its district
within two months of setting BOI
up the establishment to Prime Minister’s Office
Board of investment

safeguard labour standards

08
 Foreign companies Registration with Board of Investment

Foreign companies are required to register separately with the Board of Investment (BoI) to open
their branch or liaison of ice in Pakistan. For this registration the following documents are required:
i. Application form (duly illed in and signed with stamp)
ii. Copy of registration of company duly attested by respective Pakistan Embassy.
iii. Copy of Article of Memorandum of Association duly attested by Pakistan Embassy
iv. Copy of resolution/authority letter of the company to establish branch/liaison of ice in Pakistan
v. Company Pro ile
vi. CV of designated person authorized to act on behalf of the company + Passport copy/CNIC
vii. Copy of Contract Agreement (in case of branch of ice only)
One original and ive copies along with a soft copy via email: registration@pakboi.gov.pk

Branch Office Liaison Office

Regular Permission (initial registration for a Regular Permission (initial registration for a
period of one year) @ US $3000 period of one year) @ US $2000

US $1500 for sub-office of branch office US $1000 for sub-office of liaison office

The amount shall be deposited in the Board of Investment account being maintained with National Bank of Pakistan,
Main Branch, Civic Centre, Islamabad. Details of account are:
Title : Board of Investment
PLS Account No.: 44991-2
Branch Code : 0341
Swi Code : NBPAPKKA02I
IBAN : PK07NBPA0341003035205436

Evaluation and Issuance of Permission:

On receipt of above documents BOI examines the documents and circulates the same to all concerned quarters for
their comments, views/NOC. BOI issues permission after completion of 7 weeks' time period. The said permission
shall be liable to be cancelled, if adverse remarks are reported or NOC is not supported by any concerned quarter at
later stage.

09
Pakistan's Visa Regime:

Pakistan has visa friendly policies as stated below:

1. E-Work Visa
Pakistan Missions abroad are authorized to grant entry Work Visa to foreign expatriates on the
recommendations of Board of Investment for one-year (Multiple) validity, extendable on yearly basis
in Pakistan. Board of Investment will process work visa applications expeditiously within four weeks
and recommended to the Ministry of Interior for authorization of visa to concerned Mission.
2. Business visa
Missions abroad are authorized to grant five years validity (Multiple) visa within 24 hours to
businessmen of following 68 countries of Business Visa List (BVL) on the production of any of the
following documents: Recommendation letter from CC&I of the respective country of the foreigner;
Invitation letter from Business organization duly recommended by the concerned Trade
Organization/Association in Pakistan, or Recommendatory letter by Honorary Investment Counsellor
of BOI/Commercial Attach posted at Missions abroad. Duration of each stay is for three months.
Missions abroad can grant one month validity and stay (Multiple) entry visa to the businessmen of
remaining 107 countries (except Israel) subject to the production of afore-mentioned requisite
documents from applicants own country or place of legal residence by Ambassador/High
Commissioner/Head of Mission only on the following criteria: The applicant belongs to company of
international repute, and/or fulfils the criteria laid down for List A country in respect of valid
sponsorship from Pakistan. Conversion of Business visa into Work visa and vice versa has been
discontinued.
3 Visa on Arrival to Businessmen of 68 Countries.
Visa On Arrival (VOA) for 30 days validity and stay will be given to the businessmen of above 68
countries of Business Friendly List (BVL) (mentioned at serial L, as-well) on production of any of the
following documents: Recommendation letter from CC&I of the respective country of the foreigner;
Invitation letter from Business organization duly recommended by the concerned Trade
Organization/Association in Pakistan; or Recommendatory letter by Honorary Investment Counsellor
of BOI/Commercial Attach posted at Missions abroad.
4. Tourist Visa
Pakistan Missions abroad are authorized to grant Visit/Tourist Visa for three months validity and stay
with double entry to foreigners of List-A consisting of following 188 countries.

10
RPOs have been authorized to extend tourist visa up to a maximum period of six months including the
initial visa period and condone overstay up to 15 days on payment of visa fee subject to payment of a
minimum of US $ 10 only. For Northern Areas, the Deputy Commissioners Gilgit & Skardu have been
authorized to allow extension in visa for three months and one re-entry to the tourists in Northern
Areas, charging visa fee as per policy.
5. Group Tourism through Designated Tour Operators.
Visa on Arrival (VOA) will be allowed for one-month validity and stay (Multiple) to Group Tourists of
following 24 Tourists Friendly Countries (TFC) through designated Tour Operators in Pakistan
subject to the following conditions: -
 Case will be submitted through designated/authorized tour operators only.
 Concerned tour operator will also submit undertaking to the effect that the tourists will be their
responsibility and that they will not illegally overstay beyond validity of visa.
 If required, the same tour operators will apply, before expiry of visa for further extension up to
30 days.
 Concerned tour operators will submit a confirmation about exit of the said tourists, after their
actual leaving the country.
6. Entry into Pakistan without Visa.
Pakistan has visa abolition Agreements with following 46 countries. The foreigners holding
diplomatic, official and ordinary passport holders of the following countries can enter in Pakistan
without visa for the period mentioned against each. After expiry of the period, extension of visa would
be required through Ministry of Interior.
7. Visa Extension in Pakistan.
The Regional Passport Offices at Islamabad as well as at Provincial capitals, have been empowered to
allow one year extension in business visa on submission of the following requisite business related
documents: Valid Passport/Business visa; Documents showing substantial Investment/Export/Import
during last year; Registration letter from Tourism Division (in case of hotel business); and Other
business documents (i.e. letter from Chamber of Commerce & Industry/Registrar of Company,
partnership deed, article of association etc.)
Extension in visa beyond one year will be granted by the Ministry of Interior on production of the
requisite business documents.

11
Special Economic Zones Framework & Opportunities under CPEC:
Legal / Regulatory framework of SEZs:

The global integration of economies has forced the developing countries to adopt liberalized polices
for attraction of Foreign Direct Investment. Around the world counties have adopted proactive and
liberal polices to attract FDI. Special Economic Zones have gained momentum in attracting FDI. To
meet global competitiveness effectively and efficiently, creation of SEZs in the country had become an
acute necessity.
SEZ Act, 2012 was promulgated in 2012 and amended in 2016 to make it more business friendly. The
objective of the Act was to create efficient and competitive industrial clusters; meet global
competitiveness challenges and access to new markets; reduce cost of doing business through
attractive incentive package; attract the much needed FDI with technology and expertise; create
skilled and trained human resource; mainstreaming of marginalized areas in the economic activities
and to provide one stop facility to investors.
SEZ Act 2012 provides the creation, development and efficient operation of Special Economic Zones
through provision of a legal and regulatory framework to encourage domestic and international
investors (Detailed Eligibility criteria are at Annex-I, and documents to be attached with application
are at Annex-II).
SEZs can be set up by the Federal or Provincial Governments themselves or in collaboration with the
private sector under different modes of public-private partnership or exclusively through the private
sector. It provides establishment of SEZ anywhere in the country with minimum 50 acres of land and
any existing Zone can also apply to the SEZ Authority in which they are located to become eligible for
SEZ. Incentives are protected by the SEZ Act; and cannot be withdrawn prematurely or modified to the
disadvantage of enterprise. The law allows existing Zones/Industrial Estates to apply for the status of
SEZ. Zone developers may purchase land privately on ownership or lease land from
Federal/Provincial/Local Governments. Maximum land that each SEZ can allocate for commercial
use and other non-productive activities such as for setting up retail shops, recreational areas, hospitals
etc. would be limited to 30 % of total land area. Investors must begin construction within 6 months and
production within 24 months of project approval. The land title will not be transferred to the investor
until after it has been in production for 06 months. Government is committed to provide infrastructure
and utilities up to the zero point of the Zone; whereas developer of the SEZ will provide the same to the

12
Zone enterprise at its plot/premises in the Zone. BOI will provide one window facility within the Zone
for facilitation of Investors.

Institutional Framework of SEZs:

The Board of Approvals (BOA), the highest approving forum is headed by the Prime Minister with
membership from Economic Ministries, Provincial Governments, Public and Private Sectors. It grants
status of the SEZs to any applicant zone; fulfilling the eligibility criterion.
Under the Board of Approvals works Approvals Committee, which is headed by the Chairman, BOI
and membership from Economic Ministries, Provincial Governments, Public and Private Sectors and
SEZ Authorities (at provincial level including Gilgit- Baltistan, AJK and FATA). It performs all the
functions as delegated by the Board of Approvals. At present, it is delegated with all the functions
except policy matters, by the Board of Approvals.
According to the SEZ Act, the supervisory authorities for Special Economic Zones shall be respective
SEZ authorities in the provinces. The provincial SEZ Authorities, set up under the law, are required to
move the applications received from developers to the Federal Board of Investment which is to act as
the Secretariat to the Board of Approvals and the Approval committee.
Incentives for the developers of SEZs:
 One-time exemption from all taxes and custom duties on plant and machinery imported into
Pakistan (except items listed under Chapter 87 of Pakistan Customs) for setting up of SEZs.
 Exemption from all taxes on income accruable in relation to development and operation of
SEZs for a period of five years, starting from the date of signing of the development agreement.
 Allowance of captive power generation and excess power to be sold to the national grid.
Incentives for enterprises operating within SEZ:
 One-time exemption from custom duties and taxes on import of plant and machinery into SEZ
(except items listed under chapter 87 of Pakistan Customs) for installation in the particular
zone enterprise.
 Ten-year exemption from all taxes on income for enterprises commencing commercial
production in SEZs before 30th June 2020.
 Five-year exemption from all taxes on income for those zone enterprises of firms which
commence commercial production after 30th June 2020.

13
 Khairpur SEZ
Agro‐
processing
Korangi Creek Industrial Park Ha ar
(KCIP) ‐ Economic Zone
‐ KPK
Light engineering,
manufacturing, Business Open to all
Centers Informa on industries
Technology

7
No fied Bin Qasim Industrial

Quaid‐e‐Azam SEZ's Park

Apparel Park Light engineering, auto

and allied, manufacturng,
Tex le and logis cs
Co on

M‐3 Industrial Value Addi on City,

City Faisalabad
Tex le, Tex le, engineering,
engineering, manufactruing, IT,
manufacturing processing
and IT

Progress on the Establishment of SEZs in the Country:

After the promulgation of SEZ Act, in 2012; all the provinces, GB, AJK, FATA and the federal
government have identified forty-six (46) SEZs; out of these, seven (7) economic zones have so far
been notified as SEZs.
1.Khairpur SEZ (KSEZ)
The KSEZ, spread over an area of 136 acres will be a future hub for agro-processing and other related
industries on a location strategically positioned for proximately to date growing areas, transportation
links, and access to labor. The Zone will provide inherent benefit of essential supporting amenities to
small, medium, and large enterprises to grow and flourish in a conducive environment.

14
2. Korangi Creek Industrial Park (KCIP)
KCIP is being developed in the Korangi Industrial Area, Karachi Sindh over 240 acres land. Main
industry to be focused is Light Engineering, Food Processing, Consumer & Pharmaceutical Products,
Garments, Printing & Packaging as well as Commercial and Business Centre's information
Technology, Gems & Jewellery.
3. Bin Qasim Industrial Park (BQIP)
Bin Qasim Industrial Park has been established over an area of 930 acres on land adjacent to Arabian
Sea Country Club, at Bin Qasim Town, Karachi, Sindh. Main industry to be accommodated is Light
Engineering, Auto & Allied, Foundry & Fabrication, Pharmaceutical & Food Processing, and
Warehousing & Logistics.
4. Quaid-e-Azam Apparel Park, Sheikhupura, Punjab
The zone is located astride Lahore Islamabad Motorway at a distance of 38 Km from Lahore. The size
of the zone is 1536 acres. The zone will focus on textile and cotton industry. The expected employment
generation would be around 250,000.

5. M-3 Industrial City, Faisalabad, (M3-IC) Punjab

The zone is located in Faisalabad; the size of the zone is 4356 acres. The zone will focus on textile,
engineering & construction, chemicals, pharmaceuticals, electronics, food & beverages and I.T. The
expected employment generation would be around 500,000 to 600,000.

6. Value Addition City (VAC), Faisalabad, Punjab

The zone is located in Faisalabad. The size of the zone is 225 acres. The zone will focus on textile,
pharmaceuticals, packaging, engineering, chemicals, processing, I.T. The expected employment
generation would be around 50,000.
1. Hattar Economic Zone (Zone-VII), Haripur, Khyber Pakhtunkhwa
The zone is located in Hattar, Haripur, Khyber Pakhtunkhwa Province. The size of the zone is 424
acres; and 1000 acres additional land is also acquired for its expansion. All types of industry can be set
up in the SEZ. The expected employment generation in the zone would be 100,000.

BOI
Prime Minister’s Office
Board of investment

15
SEZs with Proximity to Key Infrastructure

16
Prioritized Special Economic Zones under CPEC:
During the 6th Pakistan-China JCC meeting held on December 29, 2016; both sides noted with
satisfaction, interest of various Chinese enterprises for development/ relocation business in Pakistan.
Pakistani side also presented a list of prioritized SEZs in the JCC. Each of the four provinces of Khyber
Pakhtunkhwa, Punjab, Sindh and Balochistan; and AJK presented two prioritized zones (one principal
and the other as alternate prioritized SEZ); while GB and FATA each presented one prioritized SEZ
and Federal Government presented two sites for the establishment of prioritized SEZs. JCC referred to
priority list of locations of SEZs shared by Pakistani side to the JWG on Industrial Cooperation. Both
sides are working closely to materialize the projects mutually agreed upon. During the first phase
following three SEZs are expected to be developed out of nine sites agreed as priority zones:
Rashakai Economic Zone, M-1, Nowshera
It will initially comprise of 1000 acres on Motorway in Mardan District (110 KM away from
Islamabad). The cost of the project will be around Pak Ruees.230 Billion. Main industry to be
catered by this zone is Fruit, Food Packaging, and Textile Stitching/Knitting
Allama Iqbal Industrial City (M3), Faisalabad
The total area for this zone is 3,000 acres approximately mostly non agriculture land with various plot
sizes to accommodate small, medium and large-scale industry. 25% of total project area has been
dedicated for Services & Facilities as per international development standards. Distance from
Faisalabad is 36 KM and from Lahore is 150 KM. Focus industry for this zone is Textile, Iron & Steel,
Pharmaceuticals, Automobiles, Packaging, Electrical & Electronics, Chemicals & dyes, Light
Engineering and Food Processing,
Dhabeji Special Economic Zone (DSEZ), Thatta
The CSEZ is situated in Dhabeji. Development Cost (Approx.) is USD 380m. The land has been
increased from 1000 acres to 1530 acres. The land title has been reserved for the development of
Dhabeji SEZ. Subsequent to the completion of feasibility Study, The Government of Sindh through
SEZ Authority, Sindh has approved the project to be executed under Public Private Partnership mode.
The hiring of Transaction Advisers has been initiated for developer solicitation on 1st of August 2018.
Industry to be parked in this zone is Foundries – Steel, Building Material, Petrochemical, Automotive
& Allied, Light Engineering, Textile & Garments, FMCGs, Logistics.

17
 Overall SEZ Mapping in Pakistan

18
 ANNEX 1

QUALIFICATION AND APPROVAL CRITERA

FOR APPROVAL OF ZONE APPLICATION
1. SEZ shall have a minimum size of at least fifty acres;
2. The SEZ, upon development, shall generate economic activity in terms of exports,
employment and other performance indicators at least equal or more than total overall capital
cost incurred over a period of 15 years.
3. SEZ will provide import substitution and generate direct and indirect exports.
4. SEZ will not target any industry or product which is being banned in the world.
5. SEZ will not target any industry material/input of which is being protected by other countries
in the larger national interest.
6. The respective Federal and Provincial Governments have committed corresponding resource
on the time line to materialize the SEZ under consideration.
7. Zone Application shall be in conformity with the provisions of the Act, any applicable
regulations issued under the Act and other applicable provisions of law.
8. 70% of the SEZ land area will be used for purpose of operations of zone enterprises.
9. Developer will be obliged to undertake to comply with all the environmental, labor and other
applicable legislation in force in Pakistan.
10. Developer will be obliged to undertake to take all necessary approvals to start construction
activities within six months of signing of development agreement.
11. Developer to be engaged for the particular SEZ shall be a body incorporated under the laws of
Pakistan.
12. Articles of Association of the developer shall be approved by the Provincial/Capital SEZ
Authority
13. Developer shall ensure that the zone enterprises start construction of facilities within six
months and assume regular production within twenty-four months after receipt of all required
licenses and permits.
14. Developer will be obliged to undertake that title of land shall only be registered in the name of
zone enterprises after they have performed business operations in the SEZ concerned for at
least six months;
15. There shall be no real estate activities in the zone.

19
 ANNEX 2

DOCUMENTS REQUIRED WITH ZONE APPLICATION

1. A basic business concept or model for the proposed SEZ.
2. Master Plan
3. A preliminary zone development plan which shall:
a) Define the geographic boundaries of the proposed SEZ;
b) Set out the basic infrastructure development requirements, both inside and outside the
proposed SEZ necessary for the proper functioning of the proposed SEZ;
c) Set out the land requirements of the proposed SEZ;
d) Set out the details of the current ownership of the proposed land;
e) A detail analysis of prices as per sale deeds executed & registered within last five years
as per official record;
f) Set out the manner in which land required shall be procured, including specifically
whether land will need to be acquired under the Land Acquisition Act 1984;
g) Set out a geotechnical study and topographical survey of the proposed land;
h) SEZ Plan encompassing Development Plan, Marketing Plan, Financing Plan and
Management Plan;
i) Cost of preparing the land based on the basis of technical estimates including but not
limited to geotechnical and topographical survey etc.
j) Set out what criteria shall be applicable to the admission of zone enterprises into that
SEZ.
4. Execution plan developed in Primavera.
5. Industrial mix and authorized commercial activities;
6. Parameters for zone admission criteria;
7. In case of zone application is being forwarded on the behest of non-recourse developer who
already owns the land, proof of title/ownership land.
8. Feasibility Study containing the following minimum components:
a) A market assessment of demand of targeted industries;
b) Assessment of the market price for industrial land and analysis for land pricing
strategy;
c) Assessment of the suitability of the local area to support the targeted industries and the
required infrastructure and amenities;

20
 d) Financial model of the costs and revenue streams of the SEZ, along with sensitivity
analysis; and
e) Economic impact analysis including estimates for job creation, export generation, and
other benefits.
9. Infrastructure commitments for road, electricity, gas, water, sewerage/drainage, waste water
treatment, communication, security, firefighting, hospital and school as provided in Rule 14 of
Special Economic Zones Rules, 2013.
10. Criteria and plan for selection of developer.
11. Draft Development Agreement.

21
 FAQs
S.No Question Response
INVESTMENT CLIMATE
How is Pakistan's' political In Pakistan, all state agencies support political stability. New
situation and stability? Do policies Government always supports and continues effective policies of the
1 change when governments previous Governments and also introduces new policies wherever
change? needed.

What is the current administration's
attitude towards the following?
 Private enterprise and privatization
2  Foreign investment/foreigners?
 Are foreign investors treated
differently from local investors?
The government is very welcoming towards Foreign investors in
regards to the establishment, expansion, management, operations, and
protection of their investments as per the Foreign Private Investment
(Promotion & Protection) Act 1976 and Protection of Economic
Reforms Act of 1992.

Pakistan receives considerable FDI from across the globe including

Is there much foreign
investment? Where does
3 Pakistan receive FDI from?
Asia, Europe, America, Africa and Australia.FDI is consistently on rise
since last decade.
The Annual report of SECP 2017-18 stated that SECP registered a total
number of 11,370 companies in the fiscal year 2017-18, raising the

BOI
number of registered companies to 87,620 and indicating a growth of
37% over the corresponding year.
Yes, private sector is consulted for shaping economic policies and is open
What is the role of the private
to doing business with foreigners.
sector? and is it consulted by the
BoI has initiated public private dialogue and has constituted Sector
government in the shaping of
4 Advisory Boards in various sectors with the objective of getting private
economic policy? Is it open to doing
sector input in policy formulation.
business with foreign entities?
Moreover, BoI is also consulting private sector in formulating new
investment strategy.
Does your country have a double- Prime Minister’s Office
Yes, Pakistan has Double Taxation Treaties with more than 65
Board
taxation treaty and investment treaties of investment
countries. The details are available on FBR's website portal at
with other countries? Are there any following link:
special commercial arrangements
5 (visa facilitations, preferential trading http://www.fbr.gov.pk/CategoryLayout.aspx?Actionid=332&view=Categor
privileges)? Do your respective y[Articles]
foreign missions abroad, provide Visa information in later sections
support to business people?
Foreign policy of Pakistan is based on friendliness and goodwill towards
all nations of the world.
Pakistan's Foreign policy is formulated in the principle of honesty and
fair play in National and International dealings. Pakistan is a member
How cordial are Pakistan's relations of several international organizations i.e. SAARC, ECO, OIC. We
6 respect economic freedom of the countries and support collective
with other Governments
economic prosperity of all Nations in the World. Pakistan has signed 48
Bilateral Investment Treaties and is in the process of revisiting its
Model BIT. Our foreign policy believes in economic diplomacy based
on mutual benefits.
INVESTORS RIGHTS AND OBLIGATIONS
What corporate organization forms There are three corporate organization forms registered by
7 are possible to register in Pakistan? the SECP:
1. Partnership Act 1932
S.No Question
Can a foreign national own
8
land/real property? If so, are
his/her property rights protected?
Do you have any limitations on
9 specifically prohibited or restricted for reasons of National Security
foreign investment?
Prime Minister’s
Board of
Do you have special
requirements/limitations as far as
10 foreign equity ownership is
concerned? Do I need a local partner?
Does your country allow free
11
convertibility and repatriation of
funds (capital, profits, royalties and
fees)?
Response
1. Limited Liability Partnership which is registered under the
Limited Liability Partnership Act, 2017.
2. Company which is registered under the Companies Act, 2017.
Further, there are different types of companies;
1. Company limited by shares
a. Single member company
b. Private company
c. Public company
2. Company limited by guarantee
a. With share capital
b. Without share capital
Unlimited company
Yes, foreign nationals can own the land, after incorporation of
company in SECP. However, land is a provincial subject in Pakistan
and regulations for land acquisition vary from province to province.
Generally Foreign Nationals can own land in individual capacity
with the permission of Federal Government (Ministry of Interior) and
respective Provincial Government.
All sectors and activities are open for foreign investment unless
and public safety.
 Specified restricted industries include arms and ammunitions;

BOI
high explosives; radioactive substances; securities, currency,
mint; and consumable alcohol.
There is no minimum requirement for the amount of foreign
equity investment in any sector.
There is no upper limit on the share of foreign equity allowed,
except in specific sectors including airline, banking, agriculture
and media.
 Foreign investors in any sector shall at any time repatriate
profits, dividends, or any other funds in the currency of the
country fromOffice
which the investment was originated. As per clause 6
of the Foreign Private Investment (Promotion & Protection) Act
investment
1976, and subject to procedural requirements set under the
Foreign Exchange Manual 2002 of the State Bank of Pakistan.
100% foreign ownership is allowed except in specific sectors
including airline, banking, engineering, agriculture and media.
100% foreign ownership is allowed except in specific sectors
including airlines, banking and media. In these sectors foreign equity
is less than 50 %. For engineering and construction equity of foreign
viz a viz local is 70:30. In agriculture it is 60:40.
The prevailing foreign exchange regime of Pakistan fully encourages
and facilitates the foreign direct investment as well as portfolio
investment in the country.
Non-resident investors of locally incorporated companies are allowed
to repatriate profits/dividends, disinvestments and designate authorized
dealers/banks to repatriate the dividends/disinvestment proceeds
through banking channels.
For por olio investment in Pakistan, foreign investors can invest in
securi es listed on Pakistan Stock Exchange by opening a Special
Conver ble Rupee Account (SCRA) with any bank in the country and
can repatriate capital gain/ dividend and sale proceeds through the
same. Furthermore, conver bility and repatria on of royalty and other
S.No Question Response
fees earned in Pakistan are also allowed subject to compliance of
foreign exchange rules and regula ons.
Following are special incentives for investments in SEZs and general
incentives for investors;
12 Are there any special incentives Fiscal Incentives for SEZs
available for certain investments? For Developers:
 One-time exemption from all custom duties and taxes on plant
and machinery imported into Pakistan for the development,
operation and maintenance of the SEZ.
 Exemption from all taxes on income accruable in relation to the
development and operation of the SEZ for a period of five years,
starting from the date of signing of the Development Agreement
For Zone Enterprises:
 One-time exemption from all custom duties and taxes on
imports of plant and machinery into the SEZ for installation therein;
 Exemption from all taxes on income for a period of ten years to
units starting production by 30 June 2020 and five years for those
doing so after 30th June 2020.
General Incentives in SEZs;
 Gas, electricity and other utilities will be provided at the zero-
point of the zones
 Captive power generation permissible to developers of the
zones
Other Incentives:

BOI
 Corporate tax rates for companies other than banking
companies are proposed to be reduced from 30% to 25% over a
period of five years and for FY 2019 tax rate is 29% (Enforced
through Finance Bill 2018 and applicable from 01.07.2018).
 Tax credits relating to BMR Investments and equity-based
investments in new industrial undertakings and expansion projects
were applicable on investments made up to June 30, 2019. These
credits are being extended to investments to be made up to June 30,
2021 (Enforced through Finance Bill 2018 and applicable from
01.07.2018).
Prime
 Minister’s Office
Ten percent customs duty on imports of complete plants for
Board of investment
relocated industries. (Customs Act: Fifth Schedule: Part 1: Serial
No. 14 (Customs Act, 1969, amended as of 30 June 2015).
Corporate Income Tax Exemption
 First year investment allowance for industrial undertakings in
specified rural and under developed areas. Income Tax Ordinance
2001: Article 23A.
 Corporate Income Tax exemption for electric power generation
projects.
 Corporate Income Tax exemption for income from exports in
IT enabled services.
Corporate Income Tax reduced to twenty percent for foreign direct
investment in industrial undertaking.
Can foreign investors access local Foreign Investors in all sectors shall be allowed to access domestic
13 credit and finance? borrowing subject to prevailing rules/ regulations of SECP and SBP
and observance to Debt-Equity ratio.
Do you have any other specific
Focus of the Government is on quality investment and preference is
operational requirements - regarding
14 given to the foreign investment that involves technology transfer.
training and technology transfer, for
example?
Is there available a set of the laws
applicable to foreign investors, in All the laws relating to foreign investment are available in English.
15 terms of main working languages of
international business?
S.No Question
What is your trade regime like? Are
16 there any conditions, restrictions or
requirements concerning import
and/or export?
OPERATIONAL CONDITIONS
17 Is there a regime in your country for
the protection of industrial and
intellectual property rights (e.g.
patents, trademarks)?
Prime Minister’s Office
Board of investment
Are there any conditions, restrictions,
or requirements (e.g. for work
18
permits) regarding the use of foreign
personnel?
19 What are the requirements for grant of
work visa?
Response
Pakistan follows liberal trade regime that focuses on reduced
protection, achieving a more outward-oriented trade, increased market
access for exports, and greater global integration, aimed at increasing
economic efficiency, competitiveness, and export-led growth. Our
trade regime supports deepening and expanding existing commitments
(e.g. SAFTA, OIC, D-8, and ECO) as well as ambitiously expanding
network of bilateral free-trade agreements with other countries of the
world.
There are no restrictions on exports (only minor excise duty etc. is
levied on few products). However, tariffs on imports of different items
are levied from time to time as per the requirement of the economy.
Yes, there is well established regime for registration, protection and
enforcement of intellectual property rights in Pakistan.
 Intellectual Property Organization (IPO-Pakistan) is the focal
body of Federal Government working under administrative
control of Commerce Division for management of IP rights in the
country.
 Registration of industrial property rights (Patents,
Trademarks, Industrial Designs) and Copyrights (Literary works,
artistic works, cinematographic work and computer software) is
administered by one umbrella organization i.e. IPO-Pakistan.
 There is effective coordination between IPO-Pakistan and law
enforcement agencies (Pakistan Customs, Police, Federal

BOI
Investigation Agency, Drug Regulatory Authority, Pakistan
Electronic Media Regulatory Authority, Provincial Food and
Health Departments) to address issues of piracy and counterfeiting
in the country.
Specialized IP Tribunals are functional at three major cities
(Karachi, Lahore and Islamabad) to make timely decision of IP
related cases.
For further details and information, please visit our website:
www.ipo.gov.pk.
Work Visas are granted to foreign technical and managerial personnel
for the purpose of imparting technical know-how and skills to the
local population. The duration of work visa is one to two years.
Visa applications require following documents:
i. Company's covering letter stating the period of visa
required and other necessary details.
ii. Passport consisting of three pages i.e. information,
entry and last visa page.
iii. Colored Photographs.
iv. Company's Registration Certificate
v. Employment agreements.
vi. Confirmation/guarantee of the credentials of the expatriates by the
company on their letter head.
vii. Company profile.
viii. Curriculum Vitae of human resources.
ix. Work / Family visa processing fee details.
x. Original / proof of work visa processing fee US$100 (equal in Pak
rupees) for one-year work visa. The amount shall be deposited in the
Board of Investment PLS Account No. 44991-2 being maintained
S.No Question
20 Do you have a minimum wage policy
or restrictive labor regulations? What
is the role/strength of labor unions in
the country?
What is the average hourly wage rate?
21
22 Are there any special sectoral policies?
23 Do you have specific environmental
limitations on industrial production
(disposal of waste, pollution controls,
etc.)?
Prime Minister’s
BoardDesignation
24 Are international quality standards and
quality control procedures applicable
in your country (e.g. ISO 9000)?
How efficient is the bureaucracy of
25
Pakistan?
Response
with National Bank of Pakistan, Main Branch, Civic Centre,
Islamabad.
Pakistan is a member of International Labour Organization (ILO) and
all regulations, standards of ILO are applicable in Pakistan.
Labour is a provincial subject in Pakistan and all provinces have their
respective labour regulations.
Worker's disputes are not very common and are dealt with mutual
consensus in relevant platforms, whenever needed. There are
number of trade unions in Pakistan; number and strength of the trade
unions have diminished considerably over the years due to
increasingly restrictive legislation imposed by the state.
In Pakistan, wage rate is determined on monthly basis instead of hourly
wage rates. Minimum wage in Pakistan is PKR 14,000/month.
Yes, there are special sectoral policies for almost all sectors. Investor
may consult BOI indicating the sector in which he/she have an interest.
Yes, there are limitations on Industrial Production and International
Environment Management System i.e. ISO 1400: 2014 is applicable in
Pakistan. Moreover, key features of Environmental Protection Act
(1997) regarding limitations on industrial production is as under:
 Initial Environmental Examination & Environmental Impact
Assessment under Section 12 to examine the environmental risks
and benefits associated with the developmental projects.
 Regulation of Motor Vehicles under Section 15, operation of a
BOImotor vehicle from which gaseous emission or noise exceeds the
NEQS, or other standards established by Pak-EPA where ambient
conditions require, have been prohibited. To ensure compliance
with the NEQS, the Pak-EPA has been empowered to direct that
pollution control devices be installed in motor vehicles or fuels
specified by Pak-EPA be used in them or specified maintenance or
testing be carried out on them.
 Establishment of Environmental Tribunals under section 20 to
hear cases relating to Pakistan Environmental Protection Act,
1997. TheOffice
Federal Government has established four
Environmental Tribune one in each province.
of investment
of Environmental Magistrates under section 24 to take
all contraventions punishable in respect of handling of hazardous
substances and pollution caused by motor vehicles.
Yes, the international quality standards & quality control procedures
are applicable in Pakistan. Some of them are as under;
 ISO 9001:2008 Management System
 ISO 1400: 2014 Environment Management System
 OHSAS 18001: 2007 Occupational Health and safety
Management System.
Pakistan is full member of International Standards Organization (ISO)
through PSQCA (under administrative control of Ministry of Science
& Technology, Government of Pakistan). Pakistan is 'P' member of ISO
and 'P' member of Technical Committees of International Electo-
technical Commission (IEC). The Pakistan Standards and Quality
Control Authority (PSQCA) and Government of Pakistan have adopted
22070 ISO Standards. Food Standards are aligned with Codex
Alimentarius Commission and traceable with WHO
Bureaucracy in Pakistan is considered one of the most efficient in Asia.
Mostly bureaucrats in Pakistan are selected after very strict and
competitive criteria and examination.
Government is determined to reform, improve and strengthen the
existing bureaucracy for an improved governance system in Pakistan.
S.No Question
How does the justice and court system
26 work? Is it efficient and independent?
Does it tolerate foreigners?
Does your country allow recourse to
27 international arbitration?
28 Does the legal system provide for the arbitration awards. In this regard, there are two main pieces of
recognition and enforcement of foreign legislation dealing with arbitration in Pakistan:
arbitration awards?
Does your country guarantee foreign
29
investors against nationalization and
expropriation?
30 What internationally recognized
control agencies operate in your
country?
31
KEY BUSINESS SUPPORT SERVICES & INFRASTRUCTURE
What international banks do you have?
Prime
Board of investment banks are presently operating in branch
32
Which International accounting firms
are operating in Pakistan?
What international insurance
33 companies do you have?
Response
The system is efficient as most of the court system is automated recently
and is also independent. Our justice system does not discriminate
between local and foreigner personal and believes on equal justice for
all.
Yes, our country allows recourse to international arbitration.
Yes, our legal system provides recognition and enforcement of foreign
1. The Arbitration Act, 1940 ("Arbitration Act") and
Arbitration Agreements and Foreign Arbitral Awards) Act, 2011
("Foreign Awards Act"). The Foreign Awards Act is simply a
ratification of the New York Convention, 1958
Yes, our country guarantees foreign investor against nationalization
and expropriation through Foreign Private Sector (Promulgation &
Protection) Act 1976 and Protection of Economic Reforms Act of
1992.
Following internationally recognized control agencies operate in
Pakistan.
 SAARC Arbitration Council.
 Trade Dispute Resolution Organization
 Centre for International Investment and Commercial Arbitration
(CIICA).
 Karachi Centre for Dispute Resolution (KCDR)

BOI
The list of international banks operating in Pakistan are as follows:
Citibank N.A. - Pakistan Operations
 Deutsche Bank AG - Pakistan Operations
 Industrial and Commercial Bank of China Limited - Pakistan
Branches
 MUFG Bank Limited
 Minister’s Office
Bank of China Limited-Pakistan Operations
The aforementioned foreign
mode in Pakistan.
In addi on, a foreign bank namely Standard Chartered Bank
(Pakistan) is opera ng as a locally incorporated subsidiary of
Standard Chartered Bank. UK.
There are many (around 28) Accounting Firms that are registered
with ICAP and have foreign affiliations some of them are as under;
1. A.F. Ferguson (Pwc) & Co.
2. KPMG Taseer Hadi & Co. Chartered Accountants.
3. Ernst & Young Ford Rhodes Sidat Hyder & Co.
4. Deloitte Yousuf Adil & Co. Chartered Accountants.
5. Baker Tilly Mehmood Idrees Qaman
6. RSM Avais Hyder Liaquat Nauman
7. PKF F.R.A.N.T.S
8. Rahman Sarfaraz Rahim Iqbal Rafiq
9. Riaz Ahmed & Co.
Grant Thornton Anjum Rahman
International Insurance Companies, registered with SECP are as
follows;
 Chubb Insurance Pakistan Limited
New Hamphsire Insurance Company (branch office of foreign
company)
S.No Question Response

34 How extensive is the local supplier Local supplier base is easily available in Pakistan, for Engineering
base (availability of raw materials, Sector. Some examples are as under;
design and engineering services, Automotive Parts & Accessories Manufacturers (Vending
machine maintenance and repair, Industry): The vending industry of Pakistan is producing high quality
components conforming to global standards, as defined by top global
printing, marketing, advertising, etc.)
vehicle assemblers, including Suzuki, Toyota, Honda, etc. The
and the local supplier network system?
industry is unique as it encompasses practically all available
engineering technologies. An automobile is an integrated product
created through the work of a multitude of auto part manufacturers,
who apply multiple technologies to create a synergistic whole. Glass
working, EDM, machining, molding, textile, plastics and many other
technologies are used to produce the finished automobile, using all
sorts of materials, from metals to rubbers, and from fibers to plastics.
Home Appliances Sector: Pakistan has a diversified market of
consumer durables, where a number of units are engaged in
production/assembling of wide range of domestic appliances like
Refrigerators, Washing Machines, TV sets, Deep Freezers, Split AC,
and Microwave Oven etc. Basic raw materials/components i.e. Steel
Sheets, Copper/ Aluminum tube, Terminal block, Plasma filter
assembly, Light switch, Compressor etc. are being sourced from both
local and imports to fulfill the requirement of the sector.
Industrial Machinery & Equipment: The sector provides machinery
& equipment for Oil & Gas, cement, sugar, fertilizer, chemical,
refineries, energy, textile and many other sectors etc.

BOI
Major products include Pressure Vessels, Process Vessels, Boilers,
Heat Recovery Boilers, Heat Exchangers, Fabrications, Waste Heat
Boilers, Biomass Boilers, Natural Gas Filters & Separation Systems,
Storage & Transport Tanks, Small Scale Combined Cycle Power
Plants, Waste Water Treatment Plants, Cane Crushers, Heavy sheet
metal fabrication etc. The basic raw materials/components for the
sector are Steel Sheets, HRC Fuses (Industrial), Automatic Circuit
Breakers, Switches, Electronic Meter, Relays and many more are
sourced from local as well as international market.
Steel Sector: Pakistan has large reserves of iron ore and coal that
Prime Minister’s
requires Office
more development for manufacturing of steel. Iron, Steel Pipe
BoardandofTube
investment
industry produces a large range of products like Cast Iron
Pipes, G.I Pipes, CR Tubes, API Line Pipes, Structural Pipes, Spiral
Welded Pipes, Heat Exchange Tubes, Pressure Tubes, Boiler Tubes,
Service Tubes, Precision Shaft Tubes and Line Tubes etc. In seamless
tube category the industry produces heat exchange tubes, pressure
tubes, boiler tubes, low temperature service tubes, precision shaft
tubes, linked tubes, etc. as per international standards. The basic raw
materials are Hot Rolled Coil, Cold Rolled Coil, Electro Galvanized
Coils, Steel Round Bars etc.
Pumps & Motors: Industry is producing water Application Pumps
which include Submersible Pumps, on clogging Pumps, Deep Well
Turbine Pumps, Deep Well Ejector Pumps, Sludge Pumps, Centrifugal
Pumps, Mono-Block Pumps, End suction Pumps, Circulatory Pumps,
Geared Pumps etc. Their basic inputs are sheet metal, Stainless Steel,
compressors, electrical parts and other accessories which are sourced
from local as well as from imports.
Wires & Cables: Product range includes Low Voltage Cables,
Medium Voltage Cables, Coaxial Cables, GWC Cables, XLPE Power
Cables, Overhead Conductors, Specialty Cables, General Domestic
Cables and Enameled Copper Wire etc. Their inputs are resin,
Polyethylene compound, Reinforced Polypropylene, insulating paper,
High carbon steel wire rod, Copper covered steel wire etc. that are
sourced both locally and imported.
S.No Question Response
Valves & Flanges: product mixed includes Gate Valves, Globe Valves,
Check Valves, Butterfly Valves, Balancing Valves, M.S. Flanges, S.S.
Flanges, Couplings, Strainers etc. Sheet metal is sourced from local
market.
Surgical Instruments: The product mix of the industry includes
surgical instruments, dental instruments, veterinary instruments,
stainless steel hollow ware for use in hospitals etc. The sector has
supply base of composite plastics, synthetic materials & ceramic
polymers, production of electro-medical, diagnostic, Laparoscopic
Instruments etc. Stainless steel, chemicals etc. that are sourced locally
as well as internationally.
Cutlery & Kitchenware: Industry manufactures cutlery, knives,
blades, scissors, daggers, swords, for decorative purposes and
kitchenware. Their basic inputs are stainless steel and chemicals,
which are sourced locally and internationally.
 Above engineering industries are using raw
materials/components both from local and imported sources.
 Repair and maintenance, marketing and advertising are being
taken care of by the industries themselves. However, the
Government of Pakistan is supporting them through subsidized
participation in various international trade fairs/exhibition
through Trade Development Authority of Pakistan (TDAP).
The local supplier network system in the Automobile, Home
Appliances, Pumps and Motors etc. is operating through an
extensive dealers' network.

35

36
Do you have a stock exchange/equity
market?
Do you have any seaports? If so, do
they handle container cargoes? Do

BOIYes, The Pakistan Stock Exchange (PSX) is the main stock exchange
of Pakistan with trading floors in Karachi, Islamabad and Lahore.

Pakistan has three large sea ports named as Karachi Port,

Muhammad Bin Qasim port, and Gwadar port. Some smaller other
you have an Export Processing ports include Port of Pasni, Port of Keti and Port of Qasim.
Zone? All large ports handle Cargoes.
Port of Muhammad Bin Qasim is the oldest port while the Karachi port
is the busiest one. The Port of Gwadar is newly developed deep sea port
and
Prime one of the Office
Minister’s deepest ports across the globe with a depth that can
handle 16-meter deep cargo ship.
BoardThere
of are
investment
four (4) EPZs in Pakistan in Risalpur, Sandak, Sialkot and
Karachi.

What air links do you have and Pakistan has Air Services Agreements with 98 ICAO Member States
37 which international airlines fly to that include States from almost all ICAO Regions. These air service
your country? agreements include our neighboring states and all major states across
the globe. However, direct air links, either bilateral or unilateral are
operational with the countries mentioned below;
1. Afghanistan
2. Bahrain
3. Bangladesh
4. Canada
5. China
6. Denmark
7. France
8. India
9. Iran
10. Iraq
11. Italy
12. Japan Kuwait
13. Malaysia
14. Norway
S.No Question Response
1. Oman
2. Qatar
3. Saudi Arabia
4. Spain
5. Sri Lanka
6. Thailand
7. Turkey
8. United Arab Emirates
9. United Kingdom
10. Uzbekistan

Pakistan has code share link with following states:

1. Jordan
2. Kenya
3. Mauritius
4. Morocco
5. Netherland
6. Servia
7. South Korea
8. Spain
9. USA

List of foreign airline operators conducting flight operations from/to

Pakistan;

BOI
1.
2.
3.
4.
5.
Air Arabia
Air China
China Southern
Emirates Airlines
Etihad Airways
6. Fly Dubai
7. Fly Nas
8. Gulf Air
9. Iran Air
Prime10. Iraqi Airways
Minister’s Office
11. Jazeera Airways
Board12.
of investment
Kam Air
13. Kish Air
14. Kuwait Airways
15. Mahan Air
16. Malindo Air
17. Oman Air
18. Qatar Airways
19. Salam Air
20. Saudi Arabian Airlines
21. Sri Lankan Airlines
22. Taban Air
23. Thai Airways
24. Turkish Airlines
Uzbekistan Airways

What are the telecommunications
38 services like in Pakistan?
Pakistan's Telecom Infrastructure and Services is continuously
improving dramatically with foreign and domestic investments into
fixed-line and mobile networks, fiber systems are being constructed
throughout the country to aid in network growth.
Reliability of the services can be judged by growing number of
mobile subscriptions that have reached at reached at 147.5 million by
S.No Question
end February, 2018. Telecom operators have invested US$ 322.9
million during 2017-18.
Do you have stable and adequate
39
power and water supply? What are
the plans for upgrading these and
other utilities?
40 Do you have a developed road
network and inland transportation
facilities? If so, are they safe?
Response
Pakistan was facing energy shortage from many years but Early
Harvest Projects of China Pakistan Economic Corridor (CPEC) for
electricity generation helped to reduce this shortage. In this regard,
most of the projects have already completed and others are in process.
With the addition of 12,661 MW in the National Grid since 2013, the
total Generation Capacity in the country stands at 33,272 MW. As a
result, load shedding has been curtailed significantly.
However, load management is being carried out due to constraints in
transmission and distribution systems. There have been 11 brown outs
in last six months. Number of projects are underway to address these
constraints.
Multiple plans are underway for strengthening DISCOs electrical
infrastructure that enhance power dispersal capacity, accommodation
of planned and unplanned load growth, expansion and rehabilitation of
Distribution Network. In this regard Pakistan's National Transmission
& Dispatch Company (NTDC) is working on over 44 major
upgradation projects
Regarding water, government has taken speedy and non-traditional
methods for constructing new dams in Pakistan.
Yes, Pakistan has developed road network and inland transportation
facilities that are quite safe for public. Pakistan is taking advantage of
its strategic location and has focused on to develop efficient and well
integrated transport and communication system by connecting remote

BOI
regions of the country into one road one Asia chain. With the help of
China-Pakistan Economic Corridor, roads and railways infrastructure
will integrate Pakistan with the regional countries which will result in
generating economic boom by integrating Pakistani markets with
Central Asia, Middle East and other parts of the world.
Below is the brief description of existing Road Network in Pakistan;

Total Roads in Pakistan= 264,000 Km

National High Way Authority (NHA) Network = 12,743
km(4.9%)Office
Prime Minister’s
Road Type Existing Under Total
Board of investment Construction
Highway 10,300 389 10,689
Motorway 689 1,365 2,054
Total 10,989 1,754 12,743

The current basic prices of utilities are as under:

What are the basic prices of your Electricity cost / KwH: 14 US cent / KwH
41 public utilities? Gas cost per MMBTU: 5.72 US $ /MMBTU
These prices are subject to market dynamics.

ECONOMIC CONDITIONS
What is the foreign exchange rate?
42
Is it fixed or pegged to the dollar or
other major currency? Has it been
stable during the last 12 months? Is
foreign exchange easily accessible?
If so, at what rate?
What are the levels and the
43 structure of taxation?
At end August 2018, USD-PKR exchange rate was at 124.24, against
105.40 observed at end August 2017. This depicts a depreciation of
15.17 percent.
Since May 1999, Pakistan has been following a flexible exchange
rate regime in which the value of Pak rupee vis‐a‐vis other
currencies is primarily determined in the foreign exchange market
through the market forces of supply and demand.
Under the Income Tax Ordinance, 2001 the tax rates for companies
in respect of their taxable income for tax year 2019 and onwards is as
under: Tax Year Tax Rate
(%)
S.No Question
44 What is the inflation rate?
45 How productive is the workforce?
What basic education and skills
does it have?
What is the real growth rate? How
46
is the economy doing: is it
depressed, stagnant or expanding?
What is the level of unemployment?
What is the migration rate?
Prime Minister’s Office
What is the size of the population
47
Board
and what is the GDP per capita for
last year?
ECONOMIC CONDITIONS
What are expatriate living conditions? Expatriates in Pakistan can live a comfortable life with variety of
availability of hotels? Is there an
international school? Do expatriates
48
have easy access to housing? Can
foreigners travel freely in your
country?
How modern are the health care and
49
hospital services? Availability of clean
drinking water? Is the climate
bearable? What recreational facilities
are available?
Response
(ending on 30th
June)
2019 29
2020 28
2021 27
2022 26
2023 and onwards 25
Inflation rate in FY 2017-18 is at 3.6%
Workforce of Pakistan is educated and graduates from higher
educational institutes. Mostly are engineers, doctors, computer
th
scientists, geologists. Pakistan is 10 largest country in terms of
skilled manpower.
 Economic Growth in Pakistan reached 13 years high at 5.79
percent in FY 2018.
 Overall economy is expanding as there is improvement in
major sectors of the economy including Agriculture, Services and
Industry.
o Agriculture Sector grew by 3.81 percent, higher than the target
of 3.5 percent and last year's growth of 2.07%.
o Services Sector also achieved the targeted growth of 6.43%
o Similarly, value addition in industrial sector grew by 5.8
percent in FY 18 as compared to 5.43 percent last year.

BOIo Moreover, China Pakistan Economic Corridor (CPEC), a
flagship project of $62 billion and has started bearing fruit as
many early harvest projects, mainly infrastructure and energy
have either been completed or will be completed in 2019.
According to Pakistan's Labour Force Survey 2014-15,
Unemployment rate is 5.90%.
Number of Pakistani workers, registered for overseas employment
(through Bureau of Emigration and Overseas Employment) is
216,164.
 of investment
Population of the country in 2017 is 207.77 million
Per Capita income is USD 1,641 (increase of 0.5% in FY2017-18)
international hotels and schools. They have easy access to housing
and can freely travel in the country. However, due to some national
security issues, some areas are restricted for security reasons.
Pakistan has excellent health care and hospital services than can be
rated equal to the developed nations. In fact, Pakistan has a mixed health
system that includes public, private, civil society, philanthropic
contributors, and donor agencies.
Private sector attends to 70% of the population through a diverse group
of trained health team members. We have specialists with excellent
knowledge, skills and experience, several private sector hospitals and
diagnostic labs that readily perform advanced diagnostic tests at short
notice. The quality of healthcare in Pakistan at instances beats even
those in advanced economies, where often one has to wait for months,
or even longer, to see specialists for specialized procedures.
Although drinking water is available in most parts of the country. Water
is not drinkable in few parts. Mineral water is available in all parts of the
S.No Question Response
country.
Pakistan has one of the best climates in the world as it has all four
seasons; a cool, dry winter from December through February; a hot,
dry spring from March through May; the summer rainy season,
or southwest monsoon period, from June through September; and the
retreating monsoon period of October and November. Each season is
bearable and all facilities are accessible everywhere for extreme
weather conditions.
Pakistan offers tremendous recreational facilities of international
standards, including hotels, parks, cinemas, and sports clubs. The
strength of Pakistan lies in its rich historical and cultural heritage with
the oldest civilizations like Indus Valley Civilization to magnificent
Mughal era architecture. The scenic valley of Hunza, abundance of
glaciers and Himalayan mountain range are some of the natural
spectacles that attract local and international tourists/visitors. The
hospitality Industry has been expanding simultaneously in the
northern areas of Pakistan with new luxurious hotels opening up in the
mountainous regions.

Crime rate varies for different categories of crimes in different

50 What is the crime rate? locations/provinces. However, police in all provinces is being
trained on modern lines to curtail the crime rate.

BOI
Prime Minister’s Office
Board of investment