LAHORE: Prime Minister Imran Khan has announced a five-year tax exemption for overseas investors to bolster investment in Pakistan.
He made the announcement during a gathering in Lahore to announce an industrial package to promote business activities in the country.
Addressing the ceremony, the premier said that countries progress from industrial development. “No country can become great without a manufacturing base and industrial growth,” he said.
“A country develops when there is wealth creation, without it they cannot move forward,” he said, adding that when a government forms policies against profit-making, it halts the development of industries and reduces investment opportunities.
He further explained when industries earn profit, other investors get attracted to that particular sector.
Salient features of the industry package
Incentives for industrial promotion
Investment in new industrial units and expansion and modernization of existing units
5% across the board payment of tax for all amounts invested
Minimum investment threshold Rs. 50 million
Industrial unit to be set-up as a company
Commercial production to begin by 30th June 2024
Previous beneficiaries of Amnesty Schemes of 2018 and 2019 not eligible
Bank loan defaulters in last three years not eligible
Incentive for revival of sick units
Applicable only to companies
Industrial units having accumulated losses in continuous 3 years to be treated as sick units
Acquiring company allowed to adjust losses of the sick units against its income for three years
Revival of the sick unit to be completed within three years of acquisition
Incentive for foreign investment in industrial sector
Pakistan citizens who are non-resident for five years and resident Pakistani having declared foreign assets are eligible to invest
One-time tax credit equal to 100% of PKR equivalent of remittance to be availed in 5 years
Investment to be made in a new industrial unit
Commercial production to start by 30th June, 2024
New industrial unit to be a company
PM Imran Khan said that earlier such policies were made which were unfavourable for industrial growth, due to which the country’s exports stopped increasing as there was no long-term plan in place.
“Pakistan never paid attention towards the export sector; whenever we faced a shortage of the US dollar we approached the International Monetary Fund (IMF),” he lamented.
Sharing details of the package, the premier said that the growth of small and medium industries have been focused on, for which the government has introduced a policy and is creating facilities for the sector’s growth.
Incentives for overseas Pakistanis
Speaking about the five-year tax exemption for foreign investors, the premier said that if they invest in the industries of Pakistan, our country will develop further.
“Facilities will be given to overseas Pakistanis who face difficulties investing in the country,” he said, citing an example that whenever overseas Pakistanis purchase land in Pakistan it has been illegally occupied as they are not personally around to look after their property. APP
