President Alvi signs Foreign Investment (Promotion & Protection) Bill 2022
President Dr. Arif Alvi has signed the Foreign Investment (Promotion and Protection) Bill, 2022 on Tuesday.
In exchange for maintaining the privacy of investors’ banking transactions, the bill offers certain qualifying foreign investments tax and investment incentives.The president approved the bill under Articles 70(1) and 75 of the Constitution.
In order to ensure sustainable economic activity and growth, the new bill will promote and protect certain qualified foreign investments. It will also improve Pakistan’s investment climate by offering incentives in the form of direct and indirect tax breaks as well as simplified transfer and repatriation procedures. The federal government, province governments, local governments, and other relevant authorities will be able to cooperate and work together under the principal offerings simplified by the new bill to assure the provision of incentives and protection to qualifying investments.
The Reko Diq Mining Company (Private) Limited (formerly Tethyan Copper Company Pakistan (Private) Limited; “RDMC” and its connected firms’ operations would be covered by the qualified investment model of the proposed legislation.
President Alvi signs Foreign Investment (Promotion & Protection) Bill 2022
Through the Foreign Investment Bill, the federal government may designate further investments, businesses, industries, or projects as qualifying investments. Additionally, it has the power to choose and approve qualifying investments, albeit only investments with an investment size of at least $500 million are permitted to receive this designation.
More importantly, the secrecy of all qualified investors’ banking transactions will be strictly observed by all banks and financial institutions, regardless of who owns, controls, or manages them.
