Pakistan New Investment Policy 2010-15:

Foreign, local investors to get financial security

The Pakistan National Assembly’s Standing Committee on Investment was informed that the new investment policy would provide financial security to foreign and local investors.

The Commercial Arbitration Act is under preparation with the new Investment Policy 2010-15.

The NA body met under the chairmanship of the Ghulam Haider Samejo, while Federal Minister Investment Senator Waqar Ahmed Khan, Secretary Tariq Iqbal Puri and other senior officials participated in the meeting. Puri told the committee that concessional finances for the first time home owner is being proposed for big developers through setting up of the Mortgage Refinance Company and floatation of mortgage bonds to attract investment in constructing of one million housing units in the country.

The initiative would result in generating economic activity worth Rs 3.5 trillion in the country and would help generate additional revenue to the tune of Rs 500 billion. There is also a proposal to give these developers land free of cost.

He also told the committee that the Ministry of Investment is also proposing insurance of land title for overseas Pakistanis as the land title has been the major obstacle in attracting investments from expatriate Pakistanis.

The committee commended the scheme and the members of the committee said that this would help attract a sizeable investment as well as to provide protection to the overseas Pakistanis intending to invest in Pakistan. The meeting was informed that the foreign investor demand- physical and financial security and its investment is fully protected against any adverse situation.

The Ministry of Investment has taken up the issue with the Ministry of Finance and the Ministry of Law and Justice so that an equal level of financial protection is made available to local and foreign investors in Pakistan.

The proposed Commercial Arbitration Act will provide a framework to set up Arbitration Centres in the country to resolve disputes and help safeguard the interest of the investors.

Secretary, Investment told the committee that the tariff concession has been proposed in the new investment policy for priority sectors such as energy, housing and infrastructure development.

It has been proposed in the policy that customs duty would be reduced from 5 percent to one percent only on the import of capital goods and raw materials.

There would be no sales tax and withholding tax on the import of machinery. It would help reduce the cost of setting up industrial units in the country.

Outlining the investment initiatives in hand, the Secretary said that the preparation of the Draft Investment Policy 2010-15 is under way. It would provide equal opportunities for local and foreign investors.

All economic sectors have been opened for investment and foreign equity up to 100 percent has been allowed.