Business Regulatory Environment
In the past, investment in Pakistan was the subject of numerous approvals, permits and licenses which have been thoroughly streamlined recently. Administration of investment is now concentrated with the BOI(Board of Investment ) and the SECP(Security Exchange Commission of Pakistan) in a kind of one stop shop system. Requirements such as the registration of foreign investors with the BOI have been removed, no more screening from the Government on foreign investment is required, unless special incentives are involved, and no requirement to obtain provincial Government clearing for project location other than for a few specified sensitive areas of operation.
The recent reduction in the number of days to set up a business in Pakistan is significant and ranks thecountry among the best in this regard in Asia .
Furthermore, the 1976 Foreign Private Investment Promotion and protection Act, as well as the 1992 Economic Reforms Act offer statutory safeguards for the rights of the foreign investor, on the basis ofnon discriminatory treatment. However, enforcement of such rights through the legal system can sometimes be problematic.
Foreign Investors are permitted to hold 100% of the equity of industrial projects without any permissionof the Government. No Government sanction is required for setting up any industry, in terms of field of
activity, location, and size, except for the following: