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Composition of the Board of Investment

Notification

In pursuance of provisions of Section 3 of BOI Ordinance 2001, the Federal Government with the approval of Competent Authority has been pleased to constitute the BOI Board having following Members with immediate effect and until further orders:

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Government Representatives

1 Prime Minister of Pakistan President of the Board
2 Minister for Finance & Economic Affairs Member
3 Minister for Industries & Production Member
4 Chairman, Board of Investment Member
5 Deputy Chairman, Planning Commission Member
6 Chairman, Federal Board of Revenue Member
7 Secretary, Board of Investment Member / Secretary

Private Sector Representatives

1 Mr. Abbas Habib, CEO, Bank Al-Habib, Karachi. Member
2 Mr. Abbass Rashid, Chairman, Society of Advancement of Education, Lahore. Member
3 Mr. Ali Zafar, Advocate, Lahore. Member
4 Mr. Asif Juma, CEO, Abbot / Pharma, Karachi. Member
5 Mr. Baber Bashir, CEO, Attock Cement, Karachi. Member
6 Captain Faizi, CEO, Vision Air, Islamabad. Member
7 Mr. Gohar Ijaz, President APTMA, Karachi. Member
8 Mr. Kalim Siddiqui, BOSICOR Oil, Karachi. Member
9 Mr. Maqsood Ismail, CEO, Candy Land, Karachi. Member
10 Mr. Mohsin Aziz, CEO, Mohsin Match Factory, Peshawar. Member
11 Mr. Muhammad Raza, CEO, MACRON, Fisheries, Karachi. Member
12 Mr. Noman Wazeer, CEO, FF SS Steel Frontier Foundry, Peshawar. Member
13 Dr. Saad Niaz, Gastroenterologist, Medilink Clinics, Karachi. Member
14 Mr. Sajjad Gul, CEO, Evernew Studio, Lahore. Member
15 Mr. Suhail P. Ahmad, CEO, Thal Engineering, Karachi. Member
16 Mr. Zahid Rafique, Habib Rafique Pvt. Ltd., Lahore. Member
17 President, Overseas Investors Chamber of Commerce & Industry, Karachi. Member
18 President, Pakistan Federation of Chamber of Commerce & Industry, Karachi. Member
19 Private Sector Nominee from Balochistan. Member

Punjab

Mining_05Economy of Punjab

Punjab’s economy is mainly agricultural, although industry makes a substantial contribution. The province is playing a leading role in agricultural production. It contributes about 68% to annual food grain production in the country. 51 million acres is cultivated and another 9.05 million acres are lying as cultivable waste in different parts of the province.

Cotton and rice are important crops. They are the cash crops that contribute substantially to the national exchequer. Attaining self-sufficiency in agriculture has shifted the focus of the strategies towards small and medium farming, stress on barani areas, farms-to-market roads, electrification for tube-wells and control of water logging and salinity.

Punjab has also more than 48 thousand industrial units. The small and cottage industries are in abundance. There are 39,033 small and cottage industrial units. The number of textile units is 11,820. The ginning industries are 6,778. There are 6,355 units for processing of agricultural raw materials including food and feed industries.

Lahore and Gujranwala Divisions have the largest concentration of small light engineering units. The district of Sialkot excels in sports goods, surgical instruments and cutlery goods.

Punjab is also a mineral rich province with extensive mineral deposits of coal, rock-salt, dolomite, and gypsum, silica-sand. The Punjab Mineral Development Corporation is running over a dozen economically viable projects

What Makes Punjab Unique?

To the north of the Punjab is the NWFP (North West Frontier Province) and the Federal capital area of Islamabad. To the north east is the Azad Kashmir. To its east and south is India (Indian Punjab & Rajasthan). To the south west is the province of Sindh. To the west is Balochistan Province and the Federally Administered Tribal Areas (FATA).

The province is predominantly on level plain. There are, however, some mountainous and hilly areas in the northwest and extreme southwest. There is also a plateau adjacent to the mountains known as the Potohar plateau and a desert belt in the south eastern part known as Cholistan.

All the major rivers of the country namely Indus, Jhelum, Chanab, Ravi, & Sutlaj flow through this province. They originate from the Himalayas and pass from North West to south west. They are primeval in nature and the volume of water increases in summer after monsoon rains, resulting sometimes in floods.

Punjab is the most populous province of Pakistan. According to 1998 census, the population of the Province is 7, 25, 85,000. The population density is 353 persons per square kilometer as compared to the national figure of 164. It contains several major cities of the country: Lahore, Faisalabad, Rawalpindi, Multan and Gujranwala.

In religion, the province is almost entirely Muslim, with a small Christian minority. Punjabi is the mother tongue of 90 percent of the population. The main language used in writing is Urdu, followed by English. The major ethnic groups are the Jat, Rajput, Arain, Gujar and Awan.

The Province of Punjab comprises eight Administrative Divisions and 34 districts. It extends over an area of 2,05,345 square kilometers (97,192 square miles) which is 25.8 percent of the total area of Pakistan.

Cultural Heritage of Punjab

Punjab has been the cradle of civilization since times immemorial. The ruins of Harappa show an advanced urban culture that flourished over 5000 years ago. Taxila, another historic landmark also stands out as a proof of the achievements of the area in learning, arts and crafts in bygone ages.

The forts, palaces, gardens, mosques, mausoleums, are eloquent reminders of the great tradition in Muslim architecture. They remind of the glorious Muslim tradition in the area which bequeathed to the province a culture which is essentially Islamic in nature.

The structure of a mosque is simple and it expresses openness. Calligraphic inscriptions from the Holy Quran decorate mosques and mausoleums. The inscriptions on bricks and tiles of the mausoleum of Shah Rukn-e-Alam (1320 AD) at Multan are outstanding specimens of architectural calligraphy. The earliest existing building in South Asia with enameled tile-work, is the tomb of Shah Yusuf Gardezi (1150 AD) at Multan. A specimen of the sixteenth century tile-work at Lahore is the tomb of Sheikh Musa Ahangar, with its brilliant blue dome. The tile-work of Emperor Shah Jahan’s reign is of a richer and more elaborate nature. The pictured wall of Lahore Fort is the last line in the tile-work in the entire world.

For queries related to investment and Business opportunities in Punjab please visit or contact Board of Investment’s following Focal Person at Provincial Government Punjab:-

Mr. Fayyaz Bashir
Secretary Industries Department
Government of Punjab, Lahore

 

Airport Entry Pass

infr_3BOI recommends one airport entry pass for protocol purpose in favour of designated person of foreign and local investors / companies, provided volume of their equity investment of US$10 million to M/o Defence.

Procedure:
Companies that want to get Airport Entry Pass for their personnel apply on Airport Entry Pass with the relevant documents to BOI.

BOI after analyzing their financial statements (equity) recommends case to Ministry of Defence under intimation to company. M/o Defence after their due diligence directed Airport Security Force (ASF) for issuance of Air Port Entry Pass.

Honorary Investment Counsellors

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mining_1Honorary Investment Counsellors work with the Board of Investment to promote Pakistan internationally and highlight trade and investment opportunities. They focus on supporting businesses seeking to establish in Pakistan.

Their business expertise and international experience are vital for supporting international investors looking to enter the Pakistani market.

Our Honorary Investment Counsellors carry out priority meetings at the request of the Board of Investment and apprise overseas investors of specific opportunities. They also undertake dedicated visits to Pakistan accompanying potential investors.

The Honorary Investment Counsellors together offer a wealth of business experience and knowledge gained across a range of sectors and geographical markets and represent a key initiative of the Board of Investment for building on its already close relationships with business, to market Pakistan and ensure that investors capitalise on the opportunities offered by the Pakistani market.

Honorary Investment Counsellors are supported in their role by a dedicated team at the Board of Investment. The services offered by Board of Investment bring together a network of business sector specialists and support teams in Islamabad, Karachi, Lahore, Peshawar, Quetta and in Pakistani diplomatic posts in some 60 markets all around the world. Board of Investment works with a wide range of partner organisations in Pakistan, including other Government departments, Provincial Development Agencies and the City District Governments, Chambers of Commerce and trade associations.

Do you attend conferences as part of your everyday business environment? Are you a member of a Local/International Association or professional body/organisation? Do you network regularly with other business leaders or experts in your field? Can you influence people’s perceptions of Pakistan as a destination where you can do business? Can you influence key decision makers to make inward investments to Pakistan? If yes, then we would like to recognise you as an Honorary Investment Counsellor.

As a Honorary Investment Counsellor and through your national and international contacts and networks, you will be able to raise your personal profile and that of your business. By bringing in more investment to Pakistan, you will receive our support and recognition for your efforts in enhancing Pakistan’s international reputation.

Raising Pakistan’s profile and enhancing the country’s reputation as a place to do business either through your business proposals, inward investment or within your business networks, will be easier if you know you can get help to do it. That is where the Board of Investment comes in.

Khyber Pakhtunkhwa

The province of Khyber Pakhtunkhwa is largely located on the Iranian plateau and Eurasian land plate, while peripheral eastern regions are located near the Indian subcontinent and this has led to seismic activity in the past. Khyber Pakhtunkhwa, spread over 74,521 sq km, has a population of over 22 million. It comprises of three major administrative parts. The capital and largest city of the province is Peshawar. One part, composed of settled areas, consists of the districts of Abbottabad, Bannu, Battagram, Charsadda, Dera Ismail Khan, Hangu, Haripur, Kohistan, Kohat, Karak, Lakki Marwat, Mansehra, Mardan, Nowshera, Swabi, Peshawar and Tank. The second known as PATA (Provincially Administered Tribal Areas) has a population of 831,000 and consists of Malakand Agency and the districts of Upper Dir, Lower Dir, Chitral, Swat, Buner, Shangla, and the pocket of Kala Dhaka / “Black Mountains”, Kohistan (previously part of Swat State) and the State of Amb, now submerged in the Tarbela Dam reservoir. The third part, FATA (Federally Administered Tribal Areas), is spread over 27,220 sq km and has a population of 3,764,000. It comprises of seven Tribal Agencies and six Frontier Regions. The Tribal Agencies are Bajaur, Mohmand, Khyber, Orakzai, Kurram, North Waziristan and South Waziristan. The Frontier Regions include F.R. Bannu, Central Kurram, F.R. Dera Ismail Khan, F.R. Kohat, F.R. Lakki, F.R. Peshawar and F.R. Tank. These are directly controlled by the Governor Khyber Pakhtunkhwa.
The northern zone is cold and snowy in winters with heavy rainfall and pleasant summers with the exception of Peshawar basin, which is hot in summer and cold in winter. It has moderate rainfall. The southern zone is arid with hot summers and relatively cold winters and scantly rainfall. Its climate varies from very cold (Chitral in the north) to very hot in places like D.I. Khan. The major rivers that cross the province are Kabul River, Swat River, Chitral River, Panjgora River, ara River, Karam River, Gomal River and Zob River.

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Its snow-capped peaks and lush green valleys of unusual beauty attract tourists from far and wide while its art and architecture no less known than the historic Khyber Pass. Once the cradle of Gandhara civilization, the area is now known for its devout Muslims who zealously guard their religion and culture and the way of life that they have been following for centuries. The region varies in topography from dry rocky areas in the south to forests and green plains in the north. The climate can be extreme with intensely hot summers to freezing cold winters. Despite these extremes in weather, agriculture remains important and viable in the area. The hilly terrain of Swat, Kalam,Upper Dir, Naran and Kaghan is renowned for its beauty and attracts a great many tourists from neighbouring regions and from around the world. Swat-Kalam is also termed ‘a piece of Switzerland’ as there are many landscape similarities between it and the mountainous terrain of Switzerland. The chai-khanas of Peshawar’s Old City allow visitors to witness the multicultural inhabitants in a relaxed setting. Qissa Kahani Bazaar and other parts of Peshawar can remind visitors of an Arabian

Nights tale.The Takht-i-Bahi is perhaps the most impressive Buddhist ruin in the province and dates back to the 1st century BCE.

Prime Minister’s Message

infr_1Pakistan has already liberalized its economy and is successfully marching towards market economy. Our private sector has assumed the role of frontline player in the economic field.

Pakistan is an investor friendly country. We offer equal treatment to local and foreign investors while all sectors are open for foreign investment under complete legal protection. The foreign companies can start their business without any official approvals on 100% equity basis. Moreover, the Government has established Special Economic Zones (SEZs) to offer some additional benefits and facilities to the foreign investors. Now, the foreign businesses can freely remit royalties, technical and franchise fee, capital, profits and dividends.

Moreover, to provide a hassle free business environment, I have placed the Board of Investment under my Secretariat to sort out expeditiously any unforeseen hitch in business operation. Now, the Board of Investment has almost become ‘One Window’ operation to facilitate investors. The Board has been mandated to attract and facilitate the investors.

Being the sixth populous country in the world, having a young demographic profile, abundant availability of skilled manpower, rich mineral resources and bumper agriculture production, Pakistan is an attractive destination for investors. Pakistan falls among the middle income countries and presence of a large middle class provides vast local market to the business as well.

Despite challenges in the recent past, Pakistan’s economy remains resilient. Our economy has achieved a five-year compound annual growth rate (CAGR) of seven percent. Modern banking sector, growing industrial and agriculture sectors are making significant contribution in the national economy. There are numerous opportunities for foreign investors especially in the engineering power, horticulture and manufacturing sectors. The Government aims to diversify the economy; therefore, an enabling investment environment for investors has been created in the country.

Our Government assures complete support and cooperation to both the local and foreign investors, and welcomes them to look at Pakistan as a preferred investment destination.

Syed Yusuf Raza Gilani,
Prime Minister, Islamic Republic of Pakistan

Chairman Message

F2650B9665BC-13The President of Pakistan, H.E. Mr. Asif Ali Zardari attaches great magnitude to investment and business in Pakistan and desires the Board of Investment to be the apex body for fulfillment of all investor needs. To make it a vibrant organization as envisioned by the President, the Board of Investment has gone through a transformation in its structure and chain of command. The New BOI is an autonomous organization directly under the Prime Minister’s Secretariat, as a result of the initiative and efforts of H.E. Mr. Yusuf Raza Gilani for the Board of Investment to be an empowered body for attracting Investment into Pakistan. The new setup has provided the BOI with the opportunity to deliver its functions more efficiently and effectively.

Pakistan is amongst the important emerging economies of the region, with a consumer base of 170 million plus and a prime location in the heart of Asia. Pakistan’s ideal location gives her access to all the growing markets of the world. In order to capitalize on its strategic location, Pakistan has adopted liberal and investor friendly policies, broad features of which include; proactive facilitation, guarantees of equal treatment to both local and foreign investors, easy tariff structures and a liberal regime on repatriation of profits. These strategies have borne results with a record inflow of Foreign Investment of US $8.4 billion, including Foreign Direct Investment (FDI) of US $5.2 billion in the year 2006-2007. Recently, the volatile environment in the region and the global financial crises has affected these figures. However, the Government now plans to undertake further structural reforms in various sectors of the economy to attract investors.

The Government has declared the Power Sector as one of the top priorities for investment and is taking all necessary measures to build a more conducive environment by simplifying procedures to facilitate potential investors. At present, Pakistan’s total installed generation capacity from Hydroelectric, Thermal, Independent Power Producers (IPPs), and Nuclear sources stands at 19,566 MW. The existing capacity of thermal power generation in Pakistan stands at 12,630 MW, which is almost two-third (64.6 percent) of the country’s total generation capacity. Hydel energy is the second largest source of electricity and accounts for 33.1 percent of total power generation in the country. The rapid economic growth over the past few years has led to a power shortage in Pakistan and the country today is looking for investment in power production to meet its short and long term power needs.

The financial sector of Pakistan is regarded as one of the best performing sectors in our region. The banking sector has shown robust performance and so have the stock markets. The contribution of the service sector in the growth of the economy has been almost 60% over the last few years. The financial sector has also attracted significant attention from the foreign investors in the recent past and still holds sufficient potential.

The initiatives taken by the BOI to setup Special Economic Zones (SEZs) and other Industrial Zones will further harness the investment and the Board of Investment assures its full cooperation and support to the investors ready to come to Pakistan.

I invite you to visit the Board of Investment and consult us before doing business in Pakistan. The Board of Investment assures you its full support and commitment to facilitate all your investment needs. Pakistan is progressing towards economic growth and we promise to make your business a success.
Saleem H. Mandviwalla ,
Minister of State / Chairman,
Board of Investment

Pakistan at a Glance

Pakistan at a Glance
Area 796,096 square kilometres
Population 176,242,949 (July 2009 est.)
Location South Asia bordering the Arabian Sea between India on the east and Iran and Afghanistan on the west and China in the north.
Land Boundaries

Total 7,266 km Afghanistan 2,430 km, China 580 km, India 2,240 km, Iran 909 km.

Coastline 1,046 km
Climate 4 Seasons, dry desert, temperate in northwest; arctic in north.
Terrain Flat Indus plain in east, mountains in north and northwest, Balochistan plateau in west and desert in south.
Elevation Extremes

Lowest point: Arabian Sea 0 m,
Highest point: K2 ( Mt. Godwin Austin – 8611 meters )

Independence 14th August 1947
National Day 23rd March
Government Type Parliamentary
Capital Islamabad
Administrative Divisions 4 provinces (Punjab, Sindh, NWFP, Balochistan)
Islamabad Capital Territory (ICT)
Federally Administered Tribal Areas (FATA)
Disputed Jammu & Kashmir region includes Azad Kashmir and the Northern Areas

TOP RANKED COUNTRIES IN THE REGION FOR “EASE OF DOING BUSINESS 2010”

Economies are ranked on their ease of doing business, from 1 – 183, with first place being the highest. The ease of doing business index averages the economy’s percentile rankings on 10 topics, made up of a variety of indicators, giving equal weight to each topic. The rankings are from the Doing Business 2010:
Reforming through Difficult Times report, covering the period June 2008 to June 2009.

the World Bank recognized Pakistan the 85th most business friendly country in the world in its annual ‘Ease of Doing Business’ report. Recent reforms improved our position and helped sustain our position as the first most business friendly location in our region.

The Ease of Doing Business Index is an index created by the World Bank. Higher rankings indicate better, usually simpler, regulations for businesses and stronger protections of property rights.

The index is based on the study of laws and regulations, with the input and verification by more than 5,000 government officials, lawyers, business consultants, accountants and other professionals who routinely advise on or administer legal and regulatory requirements.

The Ease of Doing Business index is meant to measure regulations directly affecting businesses. A nation’s ranking on the index is based on the average of 10 subindices:

1. Starting a business – Procedures, time, cost and minimum capital to open a new business

2. Dealing with licenses – Procedures, time and cost of business inspections and licensing (construction industry)

3. Hiring and firing workers – Difficulty of hiring index, rigidity of hours of index, difficulty of firing index, hiring cost and firing cost

4. Registering property – Procedures, time and cost to register commercial real estate

5. Getting credit – Strength of legal rights index, depth of credit information index

6. Protecting investors – Indices on the extent of disclosure, extent of director liability and ease of shareholder suits

7. Paying taxes – Number of taxes paid, hours per year spent preparing tax returns and total tax payable as share of gross profit

8. Trading across borders – Number of documents, number of signatures and time necessary to export and import

9. Enforcing contracts – Procedures, time and cost to enforce a debt contract

10. Closing a business – Time and cost to close down a business, and recovery rate

Branch / Liaison Offices

OPENING OF LIAISON / BRANCH OFFICES OF FOREIGN FIRM

Application Form for applying for Branch or Liaison Office Registration.

Branch Office:
Branch Offices are allowed to foreign companies on the basis of their contracts signed with public and private sector in various sectors of economy in consultation with concerned & respective Ministries/ Divisions/Departments.

Liaison Office:
Liaison Office are allowed to foreign companies to perform the task of promotion of product, provision of technical advice, assistance and explore possibilities of joint collaboration and export promotion for their parent companies in consultation with concerned quarters.

Procedure:
Companies that wish to open their Branch / Liaison Offices in Pakistan may apply to BOI for permission on prescribed form. The BOI will process and decide such cases within a period of 6 to 8 weeks after consultation with all concerned quarters.  The permission is  granted for a period of 3 to 5 years.

DESCRIPTION BRANCH OFFICE LIAISON OFFICE

 

SCOPE OF ACTIVITIES A branch office is set up by a foreign firm to execute the contracts awarded to it.

 

Activity will be restricted to the work mentioned in the agreement / contract signed

 

Cannot indulge in commercial / trading activities

 

Activity is restricted to the promotion of product(s), provision of technical advise and assistance, exploring the possibility of joint collaboration and export promotion (these activities are to be mentioned in the application)

 

 

Cannot undertake any commercial / trading activities

MEETING EXPENSES All expenses will be met out of funds transferred from abroad through normal banking channel and converted to local currency account or from the amounts received through execution of the agreement / contract All expenses will be met out of funds transferred from abroad through normal banking channel and converted to local currency account
REMITTANCE FACILITY Remittance of profits etc. is allowed subject to submission of information / documents as required in terms of Para 13 Chapter XIV of the Foreign Exchange Manual of SBP. No remittance facility allowed
HIRING OF FOREIGN NATIONALS Employment of foreign nationals shall be made subject to the prior approval of the Government as per policy and in accordance with the policy of Pakistanization. Employment of foreign nationals shall be made subject to the prior approval of the Government as per policy and in accordance with the policy of Pakistanization
IMPORT AND EXPORT OF MACHINERY Import / Export of machinery and equipment and its re-export shall be governed by the Import / Export policies of the Government Nil
REGISTRATION WITH SECP Mandatory Mandatory
FINALIZATION OF CASE 6-8 weeks; 6-8 weeks;
PERIOD OF PERMISSION 3-5 years; renewable 3-5 years; renewable
DOCUMENTS REQUIRED Six sets of the following documents are required:

 

1.       Application form

2.       Copy of registration of the foreign company duly attested by Pakistan Mission

3.       Copy of Articles and Memorandum of          Association

4.      Copy of agreement / contract in case of Branch Office

5.       Copy of Company Profile

6.       Copy of Resolution / Authority letter of the company to establish branch office inPakistan.

 

Six sets of the following documents are required:

 

1.       Application form

2.       Copy of registration of the foreign company duly attested by Pakistan Mission

3.       Copy of Articles and Memorandum of Association

4.       Copy of Company Profile

5.       Copy of Resolution / Authority letter of the company to establish liaison office in Pakistan

 

RENEWAL Following documents are required:

 

1.       Copies of valid agreements / contracts along with their duration

2.       Income tax returns (for the last 3 years)

3.       Copy of latest Audited Accounts

4.       Proceeds Realization Certificates

 

Following documents are required:

 

1.       Activity report

2.       Receipt and Payment Statement

3.       Proceeds Realization Certificates

 

TAX TREATMENT The corporate tax rate of 35% applies

 

Nil
CHANGE OF ADDRESS / TELE ETC. Has to be intimated to the Board of Investment and other concerned quarters Has to be intimated to the Board of Investment and other concerned quarters
DOCUMENTS REQUIRED FOR CLOSURE The following documents are required:

 

1.       Request letter for closure

2.       Activity Report, Proceeds Realization Certificates, andAudited Accounts for the last permitted period

3.       Copies of press clippings regarding closure

4.       Confirmation from tax authorities that all assessmentsand dues are clear.

The following documents are required:

 

1.       Request letter for closure

2.       Activity Report, Proceeds Realization Certificates, andReceipt and Payment Statement for the last permitted period

3.       Copies of press clippings regarding closure

4.       Confirmation from tax authorities that all dues are clear.