The government has reduced foreign equity from $0.5 million to $0.3 million to attract foreign direct investment (FDI). This was stated by Federal Minister for Investment, Waqar Ahmad Khan, in an interview. He said that Pakistan has given tax relaxation on the projects of social, service, infrastructure, agriculture and international chain of food franchises.
"We are also offering zero import duties on capital goods, plant, machinery and equipment, not manufactured locally, without discrimination to both local and foreign investors" he added. The Minister said that investors who invest in the newly opened sectors can import plant, machinery & equipment on concessional rates and they can also avail firstyear allowance @ of 50 percent of the cost of plant, machinery & equipment, and zero import duty on raw materials used in the production of exports is also being offered.
He said that a large number of tariff and non-tariff barriers were being removed, and the negative and prohibited lists of imports had been reduced. "Export incentives are being broadened, and the Ministry of Investment is putting its best efforts to modify the visa policy of Pakistan to facilitate foreign investors," he added.
Waqar said that besides this, special industrial zones (SIZs) are being established, with hefty fiscal incentives, to attract foreign investment in export-oriented industries. "An important achievement of the Ministry of Investment in this period is that various foreign potential companies are showing interest to explore the untapped resources, especially in power generation, oil and gas, agri-farming, affordable housing, infrastructure and engineering sectors," he added.
Comments
Comments are closed.