Economy of Pakistan

Economy of Pakistan

Pakistan Economic Overview

Growth rate

Year 2012-13



Agriculture Sector


Services Sector


Manufacturing Sector


Commodity Producing Sector


Investment Policy

All sectors open to investment (except specified industries*)

  • Equal treatment to local and foreign investors
  • Foreign equity up to 100% allowed
  • Full Remittance of capital, profits and dividends allowed
  • Lucrative fiscal incentives for import of  capital machinery and equipment.
  • Foreign investment is fully protected in Pakistan
  • Acts of Parliament protect the interest of  investors
  • Foreign Private Investment & Protection Act 1976
  • Protection of Economic Reforms Act 1992
  • Reciprocal protection and promotion of investment through Bilateral Agreements:
    • Investment Protection Treaties     47 Countries
    • Avoidance of Double Taxation       52 Countries
  • Tax Exemption under Income Tax Ordinance, 2001
    • clause (72)Profit on debt payable to non-resident.
    • clause (75) Income of an agency of a foreign Government, a foreign national company, firm or association of person or other non-resident person from profit on money borrowed under a loan agreement.
    • Any income of company by way of royalty, commission or fees from a foreign enterprise in consideration for the use of any patent, invention, model design, secret process or formula or similar property right, or information concerning industrial, commercial or scientific knowledge, experience or skill made available in the consideration of technical services rendered outside Pakistan.
    • clause (132) Profits and gains derived by a taxpayer from an electric power generation project set up in Pakistan on or after the last day of July, 1988.
    • clause (133) Income from exports of computer software or IT services or IT enable services upto the period ending on 30th of June, 2016.
    • clause (135A) Income derived by a non-resident from investment in OGDCL exchangeable bonds issued by the Federal Government