Investment Policy

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Govt. Policies - Investment Policy

Foreign direct Investment (FDI) on reportable basis is now allowed in following sectors:

Services sector:

This covers activities in:
# Whole sale distribution and retail trade
# Transportation, storage and communication
# Real estate development
# Technical testing facilities
# Audio visual services
# Rental services relating to transport equipment and machinery
# Equipment and tools for land development and agriculture purposes
# Environmental services

* Following conditions have to be met for eligibility under this policy:

# The amount of foreign equity investment shall be at least USD 0.5 million
# Foreign investors can hold 100% foreign equity subject to the condition that the repatriation of profits will be limited to 60% of total equity or profits. It will be mandatory to meet the condition that minimum 40% of the equity is held by Pakistani investors

Infrastructure Sector

* This covers activities in :

# Development of Industrial zones
# Telecommunication
# Hotel or tourism related services

* The conditions for this sector are:

# Minimum foreign investment of USD 0.5 million
# 100% foreign equity is allowed on reportable basis

Agricultural sector

* this covers activities in:

# Land development/reclamation of barren land, desert and hilly areas for agricultural purposes and crops farming
# Reclamation of water front areas/creeks
# Modernization & development of irrigation facilities
# Water management
# Plantation/forestry
# Livestock farming and breeding

The conditions are:

# Minimum foreign investment USD 0.5 million
# A minimum of 40% equity has to be held by Pakistani investors
# Proposals are processed by Board of Investment (BOI) in consultation with provincial governments for approval by the competent forum
# Agricultural land can be leased for an initial period of 30 years renewable for another 20 years
# Foreign company, allowed for investment can not transfer the ownership to another foreign company without approval from the Federal and provincial governments

Social sector

* The activities allowed for investment are:

# Education
# Technical/vocational training
# Human resource development
# Hospitals, medical and diagnostic services

* The conditions to qualify are:

# Minimum investment USD 0.5 million
# 100% foreign equity is allowed

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