Pakistan permits foreign investment across most sectors, generally on the same basis as domestic investment, though specific sectors carry their own conditions and approval requirements.
Entry structures
A foreign investor may incorporate a locally registered company with foreign shareholding, or establish a branch or liaison office, each carrying different regulatory consequences and a different approval process.
A branch office generally requires permission from the Board of Investment, while a liaison office is typically restricted to representative functions and cannot undertake commercial activity.
Repatriation and the State Bank
Repatriation of profit, dividends and capital is governed by the Foreign Exchange Regulation Act 1947 and the framework administered by the State Bank of Pakistan. Investment brought in and repatriation carried out through the proper banking channels is what allows repatriation to proceed smoothly later — this is worth getting right from the first transfer rather than correcting afterward.
Sector-specific conditions
Some sectors carry investment caps, licensing conditions or restrictions that apply in addition to the general framework. Confirming the position for the specific sector before committing capital is essential.
What to do next
Bring details of the proposed sector, structure and the source of funds, so the correct entry route and SBP-compliant channel can be identified from the outset.