The present democratic Government has adopted the policies of privatization, liberalization and deregulation of economy in Pakistan. Pakistan’s Investment Policy has been formulated to create an investors friendly environment with a focus on further opening up the economy and attract foreign direct investment and provide equal treatment to foreign and local investors. Foreign equity upto 100% is allowed, there is no restriction on remittances of royalty, technical & franchise fee, dividends, capital & profits gains.
Due to this policy the inflows witnessed an unprecedented increase between 2001-08, mainly due to economic reforms, financial and capital market reforms along-with wide scale Investment in the infrastructure by the Government of Pakistan. However, Investment has registered declining trend since 2008 due to global recession, domestic problems of energy crises and security concerns. However, the economy has now started showing sign of rejuvenation. The investment policy would be supported by investment growth strategy 2013-17, to provide comfort to prospective investors for continuation of Investment regime.
To meet the global challenges and international competitiveness effectively, Government of Pakistan has created Special Economic Zones (SEZs) scheme in Pakistan, which will become basic tool to assist investment policy. The establishment of SEZs will help to attract FDI. The SEZs law will allow to create industrial clusters with liberal incentives, infrastructure facilities, tax reliefs, investment facilitation services to enhance productivity and ease in doing business through one window operation. The law will also ensure consistency, continuity and transparency in economic policy beyond political divide and restore investor confidence; it further guarantees that incentives once granted would not be withdrawn due to conflict of interest.
I acknowledge the hard work of BOI officials in achieving these objectives despite going through the most difficult times. I wish them success in achieving higher results by working as a strong team.
Mr. Azher Ali Choudhry,
Secretary, Board of Investment