PAKLINKS BANNER EXCHANGE
| RANKING
DIRECT INVESTMENT ($ MILLION) PORTFOLIO INVESTMENT ($ MILLION) |
1
U.S.A 114.5 U.K 50.0 |
2
KOREA 92.6 U.S.A 34.0 |
3
U.K 32.0 CANADA 8.8 |
4
JAPAN 29.7 GERMANY 3.3 |
5
GERMANY 9.1 HONGKONG 2.6 |
| MAJOR EXPORTS(US$ MILLION) | MAJOR IMPORTS(US$ MILLION) |
| Cotton Cloth
Rice Cotton yan1 Synthetic Textiles Garments & Hosiery Carpets & Rugs Leather Fish & Products Sports Goods Made-UPS/Towels |
820.583
242.167 1,259.285 648.236 1,121.360 151.345 224.302 154.673 198.810 544.182 |
Petroleum & Its Products
Non-Electrical Equipment Transport Equipment Iron & Steel Products Edible Oils Chemicals Fertilizers Tea Wheat (un -milled) |
1,410
1,837 541 320 488 1,222 262 181 238 |
| MAJOR EXPORTS T0
U.S.A. SAUDI ARABIA FRANCE GERMANY HONG KONG JAPAN U.A.E U.K ITALY RUSSIA |
MAJOR IMPORTS FROM
JAPAN KUWAIT U.K CHINA MALAYS1A U. S. A GERMANY SAUDI ARABIA NETHERLANDS SWITZERLAND |
The Government of Pakistan has introduced incentives for foreign investment in the country. The salient features of the incentives packages announced by the government are given as under:
* Abolishment of all foreign exchange controls
* Detainment of funds in foreign currency account
* 100% foreign equity in a project.
* Ceilings on payment of royalty and technical fee have been removed and use of patent rights without approval of any government agency has been allowed.
* Work permit restrictions on expatriate managers have been withdrawn.
* The expatriates can remit 50% of their earnings on regular basis and can remit all of their savings at the end of their tenure.
* Foreign private investment shall not be subjected to more taxation on income than those applicable to investment made in similar circumstances by citizens of Pakistan.
* Relief from double taxation in case of those countries with which Pakistan has agreement for avoidance of double taxation.
Foreign investors being creditors of industrial undertaking are also entitled to repatriation of foreign currency with the terms and conditions of the loans.
Foreign private investment is also entitled to all concessions of duty-free import of machinery
And income tax holiday as Permissible to local investors without any discrimination.
Maximum permissible debt to equity ratio for industrial ventures has been raised from 60:40 to 70:30
* Tax holidays have been granted for new industries for a period of 3 years in urban industrial estates 8 years for areas designated as "backward" and 5 years in rural areas.
* The import regime has been liberalized.
* The negative and restrictive lists of imports have been reduced to only a small number of items (for religious and security considerations).
Incentives for Export
Numerous fiscal incentives have been given to value added exports. These include:
* Duty draw-backs on raw materials used in the manufacture of exported goods.
* Export Finance Scheme providing liberal credits and interest rebates to exporters.
* Duty free import of machinery used in the manufacture of goods to be exported.
* Import of banned or restricted items allowed for use as raw material in exportable goods.
Industrial Locations
Various locations for industries are available in Pakistan which include Industrial estates, special
industrial zones, export processing zones and rural under developed areas.
INDUSTRIAL ESTATES
* There are 64 industrial estates spread throughout the country.
* These estates enjoy varying degrees of exemption from custom duty on imported machinery.
* The private sector has been allowed to establish industrial estates anywhere in the country.
* The private sector is also allowed to generate power for its industrial undertakings in the estates.
* The surplus power generating will be bought by the Water and Power Development Authority (WAPDA), Government of Pakistan.
EXPORT PROCESSING ZONE (KARACHI)
* An Export Processing Zone at Karachi has been set up to attract foreign investment in export oriented industries.
* Apart from foreign investors, Pakistanis working abroad can also invest in industrial projects in the zone.
* The concessions and facilities offered by the KEPZ include duty-free import and export of goods, tax exemption, etc.
* Infrastructure facilities like water, electricity, gas, telecommunications etc., are available in the zone.
upto June 30 1992 141 industrial units have been sanctioned in KEPZ envisaging investment of US$ 171 million in the fields of engineering fertilizer, metal products. Chemicals automobile engineering, electrical and electronics paper printing and packaging, garments. Food processing, jewelry and gemstone, precision rnachines and other miscellaneous industries.
* Out of these approved units, 45 units are in operation while 35 insdustrial units are at the advanced stage of installation.
* The remaining units are at various stage of implementation.
* The units already in operation are employing 5180 persons and had export product worth US$ 165 million till June 30.1999.
* Warehousing and trading units have also been sanctioned.
The investment has so far emanated From Canada, Holland Hongkong ,Iran, Japan, Kuwait, Lebanon, Oman, Panama, Saudi Arabia, Singapore, Switzerland, Turkey, U.K,and Germany.
Special Industrial Zones
* The Government has decided to set up 12 special industrial zones in the country.
* Out of these 12 zones, 3 each will be set up in the provinces of Punjab and Sind 2 each in the provinces of NWFP and Balochistan and one each in Northern areas and Azad Kashmir.
* Out of the industrial zones to be established in the province of Sind, one Would be be in Port Qasim Area (PQA).