Pakistan, the cradle of one of the worldis oldest civilizations, is a land
of many splendors, from the highest peaks of Himalayas
through the green valleys of Indus to the Arabian Sea. Pakistan is the 9th most
populous country of the world with 140 million
people. Flanked by Iran and land-locked Afghanistan in the West and the Central
Asian Republics and China in the North, with
proximity to the affluent Middle East, Pakistan offers a vast market of over
200 million consumers. Pakistan with its warm
water ports and railway networks offer shortest route to supply goods and services
to the Central Asian Republics.
1.36 million labor force, adaptable, well motivated and disciplined, with
many highly skilled, available at an average
monthly salary of US$150;
2.a large corps of experienced managers, engineers, computer scientists, bankers
and financiers; with skills gained in
Pakistan, the Middle East and elsewhere;
3.a vast majority of the population have a understanding of the English language;
all management and technical personnel
will be completely fluent.
1.direct air links with 50 countries;
2.all major cities and industrial zones connected through an efficient railway
network of 8,775 km of track and a road
network of 205,304 km;
3.highly developed ports with containers and specialized terminals, linked with
the country through the rail and road
networks;
4.highly developed financial sector with over a dozen local and twenty-one foreign
commercial banks;
5.a fast developing telecommunication system with Èstate of the arti
fibre optics technology and with the availability of a
cellular telephone system.
1.Completely deregulated, liberalized economy based on market forces;
2.Macro-economic structural adjustment program successfully under way: inflation
is within single digits, the budget deficit
is contained within acceptable limits, the balance of trade is gradually improving,
with the clear sign of a stable currency;
declining tariff rates on imports, creating an almost free trade regime;
3.Free movement and exchange of foreign currencies;
4.Foreigners have free access to Pakistani capital markets, and there are no
restriction on the repatriation of principal,
dividends, and profits;
5.No limits on the equity share held by foreigners in companies and no special
requirements for entering into a joint venture
with Pakistanis;
6.No restriction on borrowing provided that government guarantees are not sought;
and
7.Statutory provisions guard against any expropriation or any other action that
may be deemed to the disadvantage of
investor. The Government has supported the legislation with bilateral treaties
with most of its major trading partners.
1.three year tax holiday for all new industries;
2.five year tax holiday for industries established in delineated rural areas
and Special Industrial Zones;
3.eight year tax holiday for industries which are established in less developed
areas;
4.exemption from customs duty, sales tax and surcharge for import of machinery,
not manufactured in the country, for units
located in rural or less developed areas and for those classified as Export
Processing and Special Zones;
5.maximum tariff rates have been reduced And non-tariff barriers have largely
removed;
6.foreign companies are allowed to undertake export trade and the public sector
monopoly in the export of rice and cotton
has been ended;
The industries set up in Special Industrial Zones are entitled to additional exemptions, such as:
1.no duty, sales tax, import iqra surcharge on imported plant and machinery
which is not manufactured locally;
2.capital gains, to the extent of the foreign equity share, will be exempted
from taxation for a period of 5 years from the
inception on the venture;
3.import duties on parts and components up to 5% of the initial C & F value
of imported plants and machinery.
1.Oil and gas drilling and refining.
2.Power generation, particularly coal fired units using the high quality coal
resources in the country.
1.Development of ports.
2.Ship building.
3.Highway construction.
4.Expansion of the telecommunications network, based on fibre optic technology.
5.Rail and road construction linking Pakistan and Turkmenistan.
1.Processing including dehydration, packaging and preservation, of fruits and vegetables.