The government has approved an investment policy
The government approved a new investment policy for 2023 in order to attract investors by implementing best practises and providing an optimal investment climate.
The policy, which has been approved by the federal cabinet, aims to create an optimal investment climate by implementing best practises and lowering barriers.
The Special Investment Facilitation Council, established by Prime Minister Shehbaz Sharif and consisting of key stakeholders, including the army chief and provincial chief ministers, played a role in developing this policy. The primary goal of the council is to facilitate foreign investment and remove barriers to investment inflows.
To develop the policy, extensive consultations were held with the World Bank, the International Finance Corporation, and provincial and federal organisations.
It is based on four main pillars, according to the reports: lowering the cost of doing business, streamlining business processes, establishing industrial clusters and special economic zones to facilitate ease of doing business, and promoting greater alignment between trade, industrial, and monetary policies.
The new policy eliminates the minimum equity restriction for foreign investment and lets foreign investors to invest in all industries except casinos, consumable alcohol manufacture, guns and ammunition, atomic energy, high explosives, and pharmaceuticals.
Foreign investors will be allowed to lease property without limits and transfer their land holdings without restrictions under the new policy. Foreign real estate developers are no longer restricted, and there will be no distinction between foreign and domestic developers.
The policy prioritises the simplification of regulations, the establishment of guidelines for resolving investment disputes, the provision of incentives based on performance and location, the protection of investors for fund transfers, expropriation safeguards, fair treatment, and the freedom to establish businesses in the country.
This development follows recent statements by Minister of State for Petroleum Musadik Malik, who disclosed that Saudi Arabia and the UAE have shown strong interest in Pakistan’s information technology and agriculture sectors.
