Punjab Investment Highlights

Enlisted below are some of the major highlights:

  • 100% Foreign Equity is allowed
  • Advanced tax ruling
  • International arbitration enforcement guide
  • All economic sectors in Pakistan open to FDI
  • Equal Treatment of local and foreign Investors
  • No Government sanction is required
  • Only 5% custom duty on import of parts not available in Punjab
  • Zero sales tax on import of machinery
  • Initial depreciation allowance at 50% of plant, machinery and equipment cost
  • Wide network of export processing zones and industrial estates
  • Bilateral investment treaties with 48 countries
  • Avoidance of double taxation treaties with 52 countries
  • Import of raw material for export manufacturing zero-rated
  • Remittance of royalty, technical and franchise fee, capital, profits and dividends allowed
  • No foreign investment in Pakistan has ever been nationalized

Investment Friendly Structures

One of the fastest growing economies is in this region, with Pakistan's GDP growth rate of 8.4% in 2005 and an average growth rate of 7% since 2003. Economic policies of Punjab have particularly been tailor-made to suit investor needs in a changing investor climate, and the policies have been consistently fine-tuning the policies of liberalization, deregulation, privatization and facilitation.

Democratic Dividend

Punjab is set firmly on the path of democratic reforms with strong participation from all sectors of government. Enhanced international collaboration due to the strengthening of democracy creates a compounded effect on the investment opportunities in the region, boosting employment and alleviating poverty.

Incentive Grid

Policy Parameters Manufacturing Sector Agriculture Infrastructure & Social Services Including IT & Telecom
Royalty & Technical Fee
No restriction for payment of royalty & technical fee.
 
$100,000 initial investment with max 5% of net sales  for a period 5 years
 
$100,000 initial investment with max 5% of net sales  for a period 5 years
 
$100,000 initial investment with max 5% of net sales  for a period of 5 years
Government Permission
 
Not required
 
Allowed
Specific agency permission
Specific agency permission
Remittance of capital, profits, dividends, etc.
Allowed
100%
100%
100%
Upper Limit of foreign equity allowed
100%
0.3
0.3
0.15
Minimum Investment Amount (M $)
None
None
5%
0-5%
Customs duty on import of PME
5%
50%
50%

 

50%
 
Tax relief (IDA, % of PME cost)
50%
50% 50% 50%