In This Post:
Structure of Board of Investment, Pakistan
Investment Regime
BOI Pakistan’s Initiatives
Targeted Economic Sectors
BOI Work Visa Portal E-services
Update: (June 07, 2021): Royal Group Co. Ltd. is one of the most famous enterprises in China, which deals in milk and dairy products. This leading Chinese company has recently proposed huge investments in Pakistan’s livestock and dairy sector. According to the latest news report, the group will initially invest $500 million.
The announcement was made in a recently held meeting between the eight-member delegation of Royal Group Co. Ltd, which was led by the group’s president Chen Yi and Mukarram Ansari, who is the Additional Secretary of the Board of Investment (BOI).
Mr. Ansari highlighted other noteworthy initiatives and efforts that have been made by both Pakistan and China including the formation of Special Economic Zones (SEZs) to boost trading, export growth, and industrialisation in the region.
Founded in 1992 by the federal government, the Board of Investment (BOI) in Pakistan was established to monitor, regulate and promote investment activities in all local industries. This government-run institution has been mandated to broaden the scope of the country’s economic sector. Ever since it was founded, the BOI, Pakistan, has been working on various noteworthy economic reforms and national initiatives, targeting local as well as overseas investors.
So, if you are willing to learn more about the organisational structure and core functions of this very important government organisation, then this blog is for you. Here we are going to give you a detailed overview of the Board of Investment, Pakistan.
So, let’s get started!
Organisational Structure of Board of Investment, Pakistan
As per the BOI Ordinance 2001, the Board of Investment in Pakistan is chaired by the Prime Minister of Pakistan. The team of BOI board members is based on representatives from both public and private sectors. Some of the key pointers about the organisational structure of Board of Investment (BOI) are as follows:
- The current chairman of the board is Prime Minister Imran Khan. His advisor on Finance Abdul Hafeez Sheikh is also one of the key figures among the BOI board members.
- The current secretary of the board is Mr. Omer Rasul.
- Including the chairman and secretary, there are thirteen board members altogether, who are overseeing and managing the operations of the Board of Investment in Pakistan.
Investment Regime
A regime-based approach helps in establishing a conducive environment to attract all-scale local and foreign investors. Keeping in view the changing economic conditions and market practices, a big reform was made by the BOI, Pakistan, when it reworked the existing policies. The framework of the new investment policy was completed and introduced by the Board of Investment, Pakistan, in 1997.
Since the framework of this new investment policy of Pakistan was designed in accordance with the changing market practices, it facilitates all economic sectors in the country including the industrial and manufacturing sectors.
Further improvements were made to the investment policy of Pakistan in 2013 to keep up with the rapidly evolving global economic trends. As of now, Pakistan’s liberal investment regime exempts taxes and duties at various levels, thus allowing businesses to make more profit.
It has provided a significant boost to the local trade as well as export sector. Tax relief up to 25 percent on different types of transactions are being provided to various industrial and commercial sectors in the country.
Lower amount of taxes and duties also attracts and facilitates the overseas investors. Such initiatives are very beneficial for economic growth and encourage investors to either seek or set up more property investment opportunities in Pakistan.
Noteworthy Initiatives by BOI, Pakistan
The two of the most appreciable initiatives by the Board of Investment (BOI), Pakistan have been listed as under:
- Ease of Doing Business in Pakistan
- Special Economic Zones in Pakistan
Ease of Doing Business in Pakistan
It is because of the consistent efforts of the authorities and improvement in the investment policy framework by BOI, Pakistan, that our country has emerged among the top ten “business climate improver” nations in the world.
The economic parameters in this regard are measured according to the “Ease of Doing Business” index, which has been jointly created by Gerhard Pohl and Simeon Djankov, two of the world’s leading economists. This index is so helpful that it is now being used as one of the core objective indicators to gauge the success of the economic sector of a country by the World Bank.
As per the official website of the Board of Investment, Pakistan, the major reforms that landed Pakistan on the list of world’s top 10 business climate improver are:
- Easier and quicker company registration process.
- Quicker release construction permits and verification process.
- Faster commercial property registration process.
- Faster and easier application process for utility services due to the availability of online portals.
- Online payment of taxes and other duties.
- Reforms and improvements in export policies.
Note: Read this blog to learn more about the latest reforms for “Ease of Doing Business in Pakistan”.
Special Economic Zones in Pakistan
The Special Economic Zone (SEZ) Act was introduced in 2012. Special Economic Zones (SEZs) usually have favourable regulations for traders helping them to trade with lower restrictions, taxes and duties. With all these features, they help nations in terms of fast-track development of the economic sector.
SEZs also encourage foreign investments and are mandated to achieve the right balance between trade, investment, and employment opportunities. This is why many countries around the world are setting up SEZs with an aim to stabilise the local economy.
Pakistan is developing some Special Economic Zones in the country as a part of the China Pakistan Economic Corridor (CPEC) Projects. We have covered detailed blog posts on Dhabeji Special Economic Zone and Rakashai Special Economic Zones that will provide you more useful information in this regard.
Targeted Economic Sectors
The Board of Investment (BOI) helps the following economic sectors to create suitable conditions for the emergence of new opportunities to invest in Pakistan. Take a look!
- Food Processing
- Logistics
- Textile
- Automobile
- Information Technology
- Housing and Construction
Food Processing
The food and beverages processing industry significantly contributes to the economy of Pakistan as it is the country’s second largest industry. The market structure of this industry is based on three branches: frozen foods, value addition in major food crops, and fruits and vegetables. Pakistan is also one of the most popular exporters of processed food products in the world.
Logistics
The logistic and transport industry contributes around 22.3% in the Gross Domestic Product (GDP) of the service sector in the country. Pakistan’s strategic geographic location plays an important part in the progress of this industry. The logistics and transport industry usually works best for large-scale investors, interested in investing in Pakistan.
Textile
Pakistan is the eighth largest textile exporter in Asia. As of now, there are more than 400 textile factories operating in the country. This industry currently provides employment to 40% of the country’s total workforce. Since Pakistan is one of the largest cotton producers in the world, it has a very beneficial impact on the cost and operations of this industry.
Automobile
Another sector that greatly contributes to the economy of Pakistan is the automobile industry. Pakistan’s Automobile sector currently makes up for 2.8% of the country’s overall GDP. International automakers like Renault, Kia, Nissan, Volkswagen, SsangYong and Hyundai have expressed interest in investing in Pakistan. Some of these companies have already set up their manufacturing plants and outlets in the country. This leads to more employment and investment opportunities in Pakistan.
Information Technology
With 60% of the total population aged between 15-29 years, Pakistan is currently one of the youngest nations in the world. People belonging to the younger age group in the country are more attracted towards the Information Technology (IT) industry and startups.
This is why Pakistan is among the top countries in the global freelancing market. Our country now has hundreds of tech startups, thousands of IT professionals and dozens of technology parks. There is a lot of potential in the IT industry of Pakistan. All these factors attract investors and multinational companies to invest in Pakistan.
Housing and Construction
Since Pakistan is one of the most populous countries in the world, the housing and construction industry has a very crucial role to play in it. As of now, more than 700,000 units are required annually and only half of this demand is currently being met. Keeping in view this huge shortfall of housing units, the government of Pakistan launched the Naya Pakistan Housing Scheme.
Furthermore, to resume and support construction activities after the pandemic, the government announced a relief package in August 2020. To learn more about this development, take a look at our detailed blog post on the recently announced relief package for the construction sector in Pakistan.
BOI Work Visa Portal
One of the major e-services of the Board of Investment in Pakistan is the E-visa facilitation for the working class. As per Pakistan’s new visa policy, the government now provides E-visas services for as many as 179 countries.
The BOI work visa portal also works according to the national visa policy, granting a work visa for one year with multiple entries. The validity of a work visa should be extended on a yearly basis. The visa application fee is around PKR 16,200 (equivalent to 100 US Dollars) which is non-refundable. For more information in this regard, navigate to the section of BOI’s official website detailing its work visa portal and how it works.
Well, that’s a wrap of our detailed overview of the Board of Investment and all of its core functions. If you still have any questions or feedback related to the information we have provided above, write to us at blogs@zameen.com.
On a side note, if you also want to start with your entrepreneurial journey, then take a look at our comprehensive blog post on the best small-scale investment opportunities in Pakistan.
For more informative pieces and detailed overviews of the key government organisations in Pakistan, keep reading Zameen Blogs. To receive all our latest updates, subscribe to our e-newsletter. Also, keep yourself updated with the current affairs by following Zameen News.
