INVESTORS' HANDBOOK:

FREQUENTLY ASKED QUESTIONS

 INVESTORS' HANDBOOK:
FREQUENTLY ASKED QUESTIONS

WHY INVEST IN PAKISTAN

Pakistan has the sixth largest popula on in the world at more 207.7
million people and is also the 26th largest economy by purchasing
power parity and 42th largest economy by nominal gross domes c
product. By 2050, Pakistan is pped to become the 18th largest
economy. The country is a federal parliamentary democracy,
comprising four provinces and other federal territories, based on
principle of separa on of powers and an efficient regulatory system
that oversees the economy. There are a number of very good reasons
why Pakistan is an a rac ve des na on for investment, including
investor friendly policies, big market, availability of skilled workforce,
developed infrastructure, geographic loca on of Pakistan and
abundance of natural resources.

This booklet is designed as a set of frequently asked ques ons by

investors, giving a brief overview of investment and business climate
in Pakistan, to provide a guideline to foreign investors interested in
capitalizing on the huge investment poten al of Pakistan.
 INVESTMENT CLIMATE

1. What is the poli cal situa on like? Is there stability? Do

governments come and go? If so how o en and with what kind
of predictability or disrup on? Do policies change when
governments change?

In Pakistan, all state agencies support poli cal stability. New

Government always support and con nue effec ve policies of the
previous Governments and introduce new policies wherever
needed.

2. What is the current administra on‘s a tude towards the

following: private enterprise and priva za on/ foreign
investment/foreigners? Are foreigners treated differently from
local investors?

The government rates foreign investors very high. Foreign

investors in rela on to the establishment, expansion,
management, opera on, and protec on of their investments are
en tled to treatment “No Less Favorable” than that granted to
Na onal Investors in like circumstances as per the Foreign Private
Investment (Promo on & Protec on) Act 1976 and Protec on of
Economic Reforms Act of 1992.

3. Is there much foreign investment? Who has already invested in

your country?

Pakistan receives considerable FDI from across the globe including

Asia, Europe, America, Africa and Australia.FDI is consistently on
rise since last one 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 number of registered companies to 87,620 and
indica ng a growth of 37% over the corresponding year.
4. How well is the local private sector treated, and is it consulted by
the government in the shaping of economic policy? Is it open to
doing business with foreigners?

Yes, private sector is always consulted for shaping economic

policies and is open to doing business with foreigners. BoI has
ini ated public private dialogue and have cons tuted Sector
Advisory Boards in various sectors with the objec ve of ge ng
private sector input in policy formula on.
Moreover, BoI is also consul ng private sector in formula ng new
investment strategy.

5. Does your country have a double-taxa on treaty and an

investment treaty with my country? Are there any special
commercial arrangements (automa c visas, preferen al trading
privileges)? Do our respec ve embassies, in your country and
mine, provide support to business people?

Yes, Pakistan has Double Taxa on Trea es with more than 65

countries. The details are available on FBR’s website portal at
following link:
h p://www. rgov.pk/CategoryLayout.aspx?Ac onid=332&view
=Category[Ar cles]

6. How cordial are the rela ons with other Governments

Foreign policy of Pakistan is based on crea ng goodwill towards all

Na ons of the world.

Our Foreign policy is formulated in the principle of honesty and

fair play in Na onal and Interna onal dealings. Pakistan is a
member of several interna onal organiza ons i.e., SAARC, ECO,
OIC. We respect economic freedom of the countries and support
collec ve economic prosperity of all Na ons in the World.
 Pakistan has signed 48 Bilateral Investment Trea es and is in the
process of revisi ng its Model BIT. Our foreign policy believes in
economic diplomacy based on mutual benefits.

INVESTORS RIGHTS AND OBLIGATIONS

7. What corporate organiza on forms are possible?

There are three corporate organiza on forms registered by the

SECP:
1. Partnership Act 1932
2. Limited Liability Partnership which is registered under
the Limited Liability Partnership Act, 2017.
3. 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
3. Unlimited company

8. Can a Foreigner own land/real property? If so, are his/her

property rights protected?

Yes, foreigners can own the land, a er incorpora on of company

in SECP. However, land is a provincial subject in Pakistan and
regula ons for land acquisi on various from province to province.
Generally Foreign Na onals can own land in individual capacity
with the permission of Federal Government (Ministry of Interior)
and respec ve Provincial Government.
9. Do you have any limita ons on foreign investment entry?

All Sectors and Ac vi es are open for foreign investment unless

specifically prohibited or restricted for reasons of Na onal
Security and public safety.
Specified restricted industries include arms and ammuni ons;
high explosives; radioac ve substances; securi es, currency, and
mint; and consumable alcohol.
There is no minimum requirement for the amount of foreign
equity investment in any sector.
Foreign investors in any sector shall at any me repatriate profits,
dividends, or any other funds in the currency of the country from
which the investment was originated. As per clause 6 of the
Foreign Private Investment (Promo on & Protec on) Act 1976,
and subject to procedural requirements set under the Foreign
Exchange Manual 2002 of the State Bank of Pakistan.
100% foreign ownership allowed except in specific sectors
including airline, banking, engineering, agriculture and media.

10. Do you have special requirements/limita ons as far as foreign

equity ownership is concerned? Do I need a local partner?

100% foreign ownership allowed except in specific sectors

including airline, banking and media. In these sectors foreign
equity is less than 50 %. For Engineering and construc on equity
of foreign viz a viz local is 70:30. In agriculture it is 60:40.

11. Does your country allow free conver bility and repatria on of
funds (capital, profits, royal es and fees)?

The prevailing foreign exchange regime of Pakistan fully

encourages and facilitates the foreign direct investment as well as
por olio investment in the country.
 Non-resident investors of locally incorporated companies are
allowed to repatriate profits/ dividends and disinvestments and
designate authorized dealers/ banks to repatriate the dividends/
disinvestment proceeds through banking channel.
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. Further, conver bility and repatria on of
royalty and other fees earned in Pakistan are also allowed subject
to compliance of foreign exchange rules and regula ons.

12. Are there any special incen ves available for certain
investments?

Following are special incen ves for investments in SEZs and

general incen ves for investors;
1. Fiscal Incen ves for SEZs
For Developers:
• One me exemp on from all custom du es and taxes on plant and
machinery imported into Pakistan for the development, opera on
and maintenance of the SEZ
• Exemp on from all taxes on income accruable in rela on to the
development and opera on of the SEZ for a period of five years,
star ng from the date of signing of the Development Agreement
For Zone Enterprises:
• One me exemp on from all custom du es and taxes on imports
of plant and machinery into the SEZ for installa on therein;
• Exemp on from all taxes on income for a period of ten years to
units star ng produc on by 30 June 2020 and five years for those
doing so a er 30th June 2020.
2. General Incen ves in SEZs;
• Gas, electricity and other u li es will be provided at the zero-
point of the Zones
• Cap ve power genera on permissible to Developers of the Zones
3. Other Incen ves:
• 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 rela ng to BMR Investments and equity based
investments in new industrial undertakings and expansion
projects were applicable on investments made upto June 30,
2019. These credits are being extended to investments to be
made upto June 30, 2021 (Enforced through Finance Bill 2018 and
applicable from 01.07.2018).
• Ten percent customs duty on imports of complete plants for
relocated industries. (Customs Act: Fi h Schedule: Part 1: Serial
No. 14 (Customs Act, 1969, amended as of 30 June 2015).
Corporate Income Tax Exemp on
• First year investment allowance for industrial undertakings in
specified rural and under developed areas. Income Tax Ordinance
2001: Art 23A.
• Corporate Income Tax exemp on for electric power genera on
projects.
• Corporate Income Tax exemp on for income from exports in IT
enabled services.
• Corporate Income Tax reduced to twenty percent for foreign
direct investment in industrial undertaking.
13. Can foreign investors access local credit and finance?

Foreign Investors in all sectors shall be allowed to access domes c

borrowing subject to prevailing rules/ regula ons of SECP and SBP
and observance to Debt-Equity ra o.

14. Do you have any other specific opera onal requirements -

regarding training and technology transfer, for example?

Focus of the Government is on Quality Investment and preference

is given to the foreign investment that involves technology
transfer.

15. Is there available a set of the laws applicable to foreign investors,

in the main working languages of interna onal business?

All the laws rela ng to foreign investment are available in English.

16. What is your trade regime like? Are there any condi ons,
restric ons or requirements concerning import and/or export?

Pakistan follows liberal trade regime that focuses on reduced

protec on, achieving a more outward-oriented trade, increased
market access for exports, and greater global integra on, aimed
at increasing economic efficiency, compe veness, and export-
led growth. Our trade regime supports deepening and expanding
exis ng commitments (e.g., SAFTA, OIC, D-8, and ECO) as well as
ambi ously expanding network of bilateral free-trade
agreements with other countries of the world.
There are no restric ons on exports (only minor excise duty etc is
levied on few products), however, Tariffs on imports of different
items are levied from me to me as per the requirement of the
economy.
 OPERATIONAL CONDITIONS

17. Is there a regime in your country for the protec on of

industrial and intellectual property rights (e.g. patents,
trademarks)?

Yes, there is well established regime for registra on, protec on

and enforcement of intellectual property rights in Pakistan.
Intellectual Property Organiza on (IPO-Pakistan) is the focal body
of Federal Government working under administra ve control of
Commerce Division for management of IP rights in the country.
Registra on of industrial property rights (Patents, Trademarks,
Industrial Designs) and Copyrights (Literary works, ar s c works,
cinematographic work and computer so ware) is administered by
one umbrella organiza on i.e. IPO-Pakistan.
There is effec ve coordina on between IPO-Pakistan and law
enforcement agencies (Pakistan Customs, I Police, Federal
Inves ga on Agency, Drug Regulatory Authority, Pakistan
Electronic Media Regulatory Authority, Provincial Food and
Health Departments) to address issues of piracy and
counterfei ng in the country.
Specialized IP Tribunals are func onal at three major ci es
(Karachi, Lahore and Islamabad) to make mely decision of IP
related cases. For further details and informa on, please visit the
website:
www.ipo.gov.pk.

18. Are there any condi ons, restric ons, or requirements (e.g. for
work permits) regarding the use of foreign personnel?

Work Visas are granted to foreign technical and managerial

personnel for the purpose of impar ng technical know-how and
skills to the local popula on. The dura on of work visa is one to
two years.
19. What are the requirements for grant of work visa

Visa applica ons require following documents;

i. Company’s covering le er sta ng the period of visa
required and other necessary details.
ii. Passport’s consis ng of three pages i.e, informa on,
entry and last visa page.
iii. Colored Photographs.
iv. Company's Registra on Cer ficate
v. Employment agreements.
vi. Confirma on/ guarantee of the creden als of the Expatriates
by the company on their le er head.
vii. Company profile.
viii. Curriculum Vitae.
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 with Na onal Bank of Pakistan, Main Branch,
Civic Centre, Islamabad.

20. Do you have a minimum wage policy or restric ve labour

regula ons? Are worker disputes or strikes common? What is
the strength of the trade union movement?

(ILO) and all regula ons, standards of ILO are applicable in

Pakistan.
Labour is a provincial subject in Pakistan and all provinces have
their respec ve labour regula ons. Worker’s disputes are not very
common and is dealt with mutual consensus in relevant
pla orms, whenever arises.
There are number of trade unions in Pakistan. The number and
strength of the trade unions has diminished considerably over the
years due to certain control mechanisms. Efforts are being
introduced to improve the working environment.
21 What is the average hourly wage rate?

In Pakistan, wage rate is determined on monthly basis instead of

hourly wage rates. Minimum wage in Pakistan is PKR
14,000/month.

22. Is there any special sectoral policies?

Yes, there are special sectoral policies of almost all sectors.

Investor may consult BOI indica ng the sector in which he/she
have an interest.

23. Do you have specific environmental limita ons on industrial

produc on (disposal of waste, pollu on controls, etc.)?

Yes, there are limita ons on Industrial Produc on and

Interna onal Environment Management System i.e., ISO 1400:
2014 is applicable in Pakistan. moreover, Key features of
Environmental Protec on Act (1997) regarding limita ons on
industrial produc on is as under;
Ini al Environmental Examina on & Environmental Impact
Assessment under Sec on 12 to examine the environmental risks
and benefits associated with the developmental projects.
Regula on of Motor Vehicle under Sec on 15, Opera on of a
motor vehicle from which gaseous emission or noise exceeds the
NEQS, or other standards established by Pak-EPA where ambient
condi ons so require, have been prohibited. To ensure
compliance with the NEQS, the Pak-EPA has been empowered to
direct that pollu on control devices be installed in motor vehicles
or fuels specified by Pak-EPA be used in them or specified
maintenance or tes ng be carried out on them.
Establishment of Environmental Tribunals under sec on 20 to
 hear cases rela ng to Pakistan Environmental Protec on Act,
1997. The Federal Government has established four
Environmental Tribune one in each province.
Designa on of Environmental Magistrates under sec on 24 to
take all contraven ons punishable in respect of handling of
hazardous substances and pollu on caused by motor vehicles.

24. Are interna onal quality standards and quality control

procedures applicable in your country (e.g. ISO 9000)?

Yes, the interna onal 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 Occupa onal Health and safety Management
System.

Pakistan is full member of Interna onal Standards Organiza on

(ISO) through PSQCA (under Administra ve control of Ministry of
Science & Technology, Government of Pakistan). Pakistan is ‘P’
member of ISO and ‘P’ member of Technical Commi ees of
Interna onal 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

25. How efficient is the bureaucracy? Is there any corrup on?

Bureaucracy in Pakistan is considered one of the most efficient

and strong system in Asia. Mostly bureaucrats are efficient in
Pakistan because they are selected a er very strict scru ny.
Government is determined to improve and strengthen the
exis ng bureaucracy for reforming overall governance system.
26. How does the jus ce and court system work? Is it efficient and
independent? Does it tolerate foreigners?

The system is efficient as most of the court system is automated

recently and is also independent. Our jus ce system does not
discriminate between local and foreigner personal and believes
on equal jus ce for all.

27. Does your country allow recourse to interna onal arbitra on?

Yes, our country allow recourse to interna onal arbitra on.

28. Does the legal system provide for the recogni on and
enforcement of foreign arbitra on awards?

Yes, our legal system provide recogni on and enforcement of

foreign arbitra on awards. In this regard, there are two main
pieces of legisla on dealing with arbitra on in Pakistan:

1. The Arbitra on Act, 1940 ("Arbitra on Act") and

2. Arbitra on Agreements and Foreign Arbitral Awards) Act, 2011
("Foreign Awards Act"). The Foreign Awards Act is simply a
ra fica on of the New York Conven on, 1958

29. Does your country guarantee foreign investors against

Na onaliza on and Expropria on?

Yes, our country guarantees foreign investor against

na onaliza on and expropria on through Foreign Private Sector
(Promulga on & Protec on) Act 1976 and Protec on of Economic
Reforms Act of 1992.
30. What interna onally recognized control agencies operate in
your country?

Following interna onally recognized control agencies operate in

Pakistan:

• SAARC Arbitra on Council.

• Trade Dispute Resolu on Organiza on
• Centre for Interna onal Investment and Commercial Arbitra on
(CIICA).
• Karachi Centre for Dispute Resolu on (KCDR)
Government of Punjab has also established Three (3) media on
Centers established in Lahore

KEY BUSINESS SUPPORT SERVICES &

INFRASTRUCTURE

31. What interna onal banks do you have?

The list of interna onal banks opera ng in Pakistan are as

follows:

• Ci bank N.A. - Pakistan Opera ons

• Deutsche Bank AG - Pakistan Opera ons
• Industrial and Commercial Bank of China Limited - Pakistan
Branches
• MUFG Bank Limited
• Bank of China Limited-Pakistan Opera ons

The aforemen oned foreign banks are presently opera ng in

branch 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.
32. What Interna onal Accoun ng Firms do you have?

There are many (around 28) Accoun ng Firms that are

registered with ICAP and have foreign affilia ons 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. Deloi e 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.
10. Grant Thornton Anjum Rahman

33. What interna onal insurance companies do you have?

Interna onal Insurance Companies, registered with SECP are as

follows:

• Chubb Insurance Pakistan Limited

• New Hamphsire Insurance Company (branch office of foreign
company)

34. How extensive are the local supplier base (availability of raw
materials, design and engineering services, machine
maintenance and repair, prin ng, marke ng, adver sing, etc.)
and the local supplier network system?

Local supplier base is easily available in Pakistan, for Engineering

Sector. Some examples are as under:

Automo ve Parts & Accessories Manufacturers (Vending

Industry): The vending industry of Pakistan is producing high
quality components conforming to global standards, as defined by
top global vehicle assemblers, including Suzuki, Toyota, Honda,
etc. The industry is unique as it encompasses prac cally all
available engineering technologies. An automobile is an
integrated product created through the work of a mul tude of
auto part manufacturers, who apply mul ple technologies to
create a synergis c whole. Glass working, EDM, machining,
molding, tex le, plas cs and many other technologies are used to
produce the finished automobile, using all sorts of materials, from
metals to rubbers, and from fibers to plas cs.

Home Appliances Sector: Pakistan has a diversified market of

consumer durables, where a number of units are engaged in
produc on/assembling of wide range of domes c 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, fer lizer,
chemical, refineries, energy, tex le and many other sectors etc.

Major products include Pressure Vessels, Process Vessels, Boilers,

Heat Recovery Boilers, Heat Exchangers, Fabrica ons, Waste Heat
Boilers, Biomass Boilers, Natural Gas Filters & Separa on Systems,
Storage & Transport Tanks, Small Scale Combined Cycle Power
Plants, Waste Water Treatment Plants, Cane Crushers, Heavy
sheet metal fabrica on etc. The basic raw materials/components
for the sector is Steel Sheets, HRC Fuses (Industrial), Automa c
Circuit Breakers, Switches, Electronic Meter, Relays and many
more are sourced from local as well as interna onal market.

Steel Sector: Pakistan has large reserves of iron ore and coal that
requires more development for manufacturing of steel. Iron, Steel
Pipe and Tube 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 Sha Tubes and Line
Tubes etc. In seamless tube category the industry produces heat
exchange tubes, pressure tubes, boiler tubes, low temperature
service tubes, precision sha tubes, linked tubes, etc as per
interna onal 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 Applica on Pumps

which include Submersible Pumps, on clogging Pumps, Deep Well
Turbine Pumps, Deep Well Ejector Pumps, Sludge Pumps,
Centrifugal Pumps, Mono-Block Pumps, End suc on 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
Domes c Cables and Enameled Copper Wire etc. Their inputs are
resin, Polyethylene compound, Reinforced Polypropylene,
Insula ng paper, High carbon steel wire rod, Copper covered steel
wire etc that are sourced both locally and imported.

Valves & Flanges: product mixed includes Gate Valves, Globe

Valves, Check Valves, Bu erfly 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 plas cs, synthe c materials & ceramic
polymers, produc on of electro-medical, diagnos c,
 Laparoscopic Instruments etc. Stainless steel, chemicals etc that
are sourced locally as well as interna onally.

Cutlery & Kitchenware: Industry manufactures cutlery, knives,

blades, scissors, daggers, swords, for decora ve purposes and
kitchenware. Their basic inputs are Stainless steel and chemicals,
which are sourced locally and interna onally.

Above engineering industries are using raw materials/

components both from local and imported sources. Repair and
maintenance, marke ng and adver sing are being taken care of
by the industries themselves. However, the Government of
Pakistan is suppor ng them through subsidized par cipa on in
various interna onal trade fairs/exhibi on through Trade
Development Authority of Pakistan (TDAP).

The local supplier network system in the Automobile, Home

Appliances, Pumps and Motors etc. is opera ng through an
extensive dealers’ network.

35. Do you have a stock exchange/equity market?

Yes, The Pakistan Stock Exchange (PSX) is the stock exchange of

Pakistan with trading floors in Karachi, Islamabad and Lahore.

36. Do you have any seaports? If so, do they handle container

cargoes? Do you have an Export Processing Zone?

Pakistan has three big sea ports named as Karachi Port,

Muhammad Bin Qasim port, and Gwadar port. Some other ports
include Port of Pasni, Port of Ke and Port of Qasim.

Yes, all big 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 one of the deepest ports across the globe with a
depth that can handle 16-meter deep cargo ship.

There are four (04) EPZs in Pakistan in Risalpur, Sandak, Sialkot and
Karachi.

37. What air links do you have and which interna onal airlines fly
to your country?

Pakistan has Air Services Agreements with 98 ICAO Member

States that include States from almost all ICAO Regions. These air
service agreements include our neighboring states and all major
states across the globe. However a direct air links, either bilateral
or unilateral are existent with the States men oned below:

1. Afghanistan
2. Behrain
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
15. Oman
16. Qatar
17. Saudi Arabia
18. Spain
19. Sri Lanka
20. Thailand
21. Turkey
22. United Arab Emirates
23. United Kingdom
24. Uzbekistan

Pakistan has Code share link with following states;

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

Following is the list of foreign airline operators conduc ng flight

opera ons from/to Pakistan;

1. Air Arabia
2. Air China
3. China Southern
4. Emirates Airlines
5. E had Airways
6. Fly Dubai
7. Fly Nas
8. Gulf Air
9. Iran Air
10. Iraqi Airways
11. Jazeera Airways
12. 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
25. Uzbekistan Airways

38. What are the telecommunica ons services like? Are they
reliable?

Pakistan's Telecom Infrastructure and Services is con nuously

improving drama cally with foreign and domes c 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 subscrip on that have reached at reached at 147.5 million
by end February, 2018. Telecom operators have invested US$
322.9 million during 2017-18.

39. Do you have stable and adequate power and water supply?
What are the plans for upgrading these and other u li es?

Pakistan was facing energy shortage from many years but Early
Harvest Projects of China Pakistan Economic Corridor (CPEC) for
electricity genera on helped to reduce this shortage. In this
regard, most of the projects have already completed and others
are in process.

With the addi on of 12,661 MW in the Na onal Grid since 2013,

the total Genera on Capacity in the country stands at 33,272 MW.
As a result, load shedding has been curtailed significantly.

However, brownouts/load management is being carried out due

to constraints in transmission and distribu on systems. There
have been 11 brown outs in last six months. Number of projects
 are underway to address these constraints.

Mul ple plans are underway for strengthening DISCOs electrical

infrastructure that enhance power dispersal capacity,
accommoda on of planned and unplanned load growth,
expansion and rehabilita on of Distribu on Network. In this
regard Pakistan’s Na onal Transmission & Dispatch Company
(NTDC) is working on over 44 major upgrada on projects.

Regarding water, Government has taken speedy and non-

tradi onal method for construc ng new dams in Pakistan.

40. Do you have a developed road network and inland

transporta on facili es? If so, are they safe?

Yes, Pakistan has developed road network and inland

transporta on facili es that are quite safe for public. Pakistan is
taking benefits of its strategic loca on and has focused on to
develop efficient and well integrated transport and
communica on system by connec ng remote 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
genera ng economic boom by integra ng Pakistani markets with
Central Asia, Middle East and other parts of the world.

Below is the brief descrip on of exis ng Road Network in

Pakistan:
Total Roads in Pakistan= 264,000 Km
41. What are the basic prices of your public u li es?

The current basic prices of u li es are as under:

Electricity cost / KwH: 14 US cent / KwH
Gas cost per MMBTU: 5.72 US $ /MMBTU
These prices keep on fluctua ng based on market situa on.

ECONOMIC CONDITIONS

42. What is the foreign exchange rate? 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?

At end August 2018, USD-PKR exchange rate was at 124.24,

against 105.40 observed at end August 2017. This depicts a
deprecia on 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.

43. What are the level and the structure of taxa on?

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:
44. What is the infla on rate?

Infla on rate in FY 2017-18 is 3.6%.

45. How produc ve is the workforce? What basic educa on and

skills does it have?

Working class of Pakistanis is educated graduates from higher

educa onal ins tutes. Mostly are engineers, doctors, computer
scien sts, geologists. Pakistan is 10th largest country in terms of
skilled manpower.

46. What is the real growth rate? How is the economy doing: is it
depressed, stagnant or expanding? What is the level of
unemployment? What is the migra on rate?

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.

Agriculture Sector grew by 3.81 percent, higher than the target of

3.5 percent and last year’s growth of 2.07%. Services Sector also
achieved the targeted growth of 6.43 percent. Similarly value
 addi on in industrial sector grew by 5.8 percent in FY 18 as
compared to 5.43 percent last years.

Moreover, China Pakistan Eonomic Corridor (CPEC), a flagship

project of $62 billion has started bearing fruit as many early
harvest projects, mainly infrastructure and enrgy 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
Emigra on and overseas employment) is 216,164.

47. What is the size of the popula on and what is the GDP per head
figure for last year?

Popula on of the country in 2017 is 207.77 million.

Per Capita income is USD 1,641.

48. What are expatriate living condi ons like: how are the hotels? Is
there an interna onal school? Do expatriates have easy access
to housing? Can foreigners travel freely in your country?

Expatriates in Pakistan can live a comfortable life with variety of

interna onal hotels and schools. They have easy access to housing
just like local popula on. Foreigners can freely travel in the
country. However, due to some na onal security issues, some
areas are restricted for security reasons.

49. How modern are your health care and hospital services? Is the
water drinkable? Is the climate bearable? What are the
recrea onal facili es like?

Pakistan has excellent health care and hospital services than can
be rated equal to the developed na ons. In fact, Pakistan has a
mixed health system that includes public, private, civil society,
philanthropic contributors, and donor agencies.
Private sector a ends 70% of the popula on through a diverse
group of trained health team members. We have specialists with
excellent knowledge, skills and experience, several private sector
hospitals and diagnos c labs that readily perform advanced
diagnos c tests at short no ce.
The quality of healthcare in Pakistan beats even that in advanced
economies, where o en 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 country.
Pakistan has one of the best climate 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 retrea ng monsoon period of October and
November. Each season is bearable and all facili es are accessible
everywhere for extreme weather condi ons.
Pakistan offers tremendous recrea onal facili es that are of
interna onal standards, including hotels, parks, cinemas, and
sports clubs. The strength of Pakistan lies in its rich historical and
cultural heritage with the oldest civiliza ons like Indus Valley
Civiliza on to magnificent Mughal era architecture. The eye
catching valley of Hunza, abundance of glaciers and Himalayan
Mountains are some of the natural spectacles that a ract
tourists/visitors. The Hospitality Industry has been expanding
simultaneously in the Northern areas of Pakistan with a few
luxurious hotels opening up in the mountainous regions.
50. What is the crime rate?

Crime rate varies for different categories of crimes and from

different loca ons/provinces. However, police in all provinces is
being trained on modern lines to curtail the crime rate and safe
city projects have been launched in urban centers to control street
crimes.
CONTACT INFORMATION

Head Office
Ataturk Avenue, G-5/1, Islamabad
Tel: (+92-51)922 4103, 922 4101
Fax: (+92-51)921 5554
www.pakboi.gov.pk

Regional Offices
BOI - Investment Facilita on Centre (Karachi)
Syedna Taher Saifuddin Memorial Founda on,
3rd Floor, Plot No. CD-10/20/2, Beaumont Road,
Civil Lines, Karachi-75530.
Tel:- (021-99204482-83-84)
Fax No. (021-9920 4486)

BOI - Investment Facilita on Centre (Peshawar)

Khyber Pakhtunkhwa Chamber House, 2nd Floor,
G.T. Road, Peshawar.
Tel: (92-91) 921 2743, 921 2745
Fax: (92-91) 921 2751

BOI - Investment Facilita on Centre (Lahore)

43-D-1, Gullberg-III, OFF MM Alam Road, Lahore
Tel: (+92-42) 99268311-12-13-14
Fax: (+92-42) 99268310

BOI - Investment Facilita on Centre (Que a)

H. No. 187, Zarghoon Road, Opp. AG Office Que a
Tel: (92-81) 920 3796
Fax: (92-81) 920 3818