The Pakistan Investment Policy 2023 introduces several reforms to attract foreign investors

07 Jul 2023

On 7 July 2023, the Government of Pakistan approved the Pakistan Investment Policy (PIP) 2023 to enhance both foreign and domestic investments. This policy is a result of the Special Investment Facilitation Council (SIFC), an apex body formed by Prime Minister. The policy introduces several novelties, including: - the minimum equity requirement for foreign investment has been abolished, allowing foreign investors to invest in all sectors except for casinos, consumable alcohol manufacturing, arms and ammunition, atomic energy, high explosives, currency, and mining. - foreign investors will also have the freedom to repatriate their profits abroad in their own currency and receive special protection. - foreign investors will no longer face restrictions on leasing or transferring land. Restrictions on foreign real estate developers have been lifted, and there will be no differentiation between foreign and domestic developers. - foreign investors will be allowed to hold a 60 per cent stake in agricultural projects and 100 per cent equity in corporate agriculture farming.

The policy also focuses on simplifying business regulations and provides guidelines for establishing an investment grievances mechanism to address investment disputes.

Finally, the policy outlines mechanisms for granting incentives based on performance and location and offers treatment and protection guarantees in the areas of expropriation, fair treatment, and freedom to establish businesses in the country.