Islamabad: The federal government has made it mandatory for all foreign firms to invest in joint ventures with Pakistani firms, a news source reported.
The decision has been taken to boost the importance of local companies. It was announced by Board of Investment (BOI) Chairman Haroon Sharif during a meeting centred on ease of doing business. Currently, the government allows 100% foreign equity with no minimum or upper limit. This puts local companies at an economic disadvantage.
The government’s new joint venture-compulsion policy is in keeping with emerging global market trends. As per an official study, joint ventures in textiles, leather, chemicals, pharmaceuticals, food processing, and agro-based product industries help to uplift the national economy.
According to the BOI, only a few countries are interested in investing in Pakistan. These include Saudi Arabia in oil refinery, petrochemicals, renewable energy and mining, and the United Arab Emirates in the housing and agriculture sectors. Malaysian firms have shown interest in investing in halal meat production, gemstone refining, IT and high-tech education.
