Many foreign investors and residents seem interested in purchasing property in Pakistan but they avoid it by thinking about the lengthy procedure.
So in this blog, we’ll be sharing information regarding the topic how can foreigners invest in Pakistan real estate and this will be very explanatory for the people living abroad and want to get a property here.
The foreigner has to fulfill some essential regulations of by the government of Pakistan likewise investment board and Pakistan Trade Development Authority (PTDA). The process of acquiring the land is a provincial matter so the referral course of action can be contrasting from each province to other.
If we talk about the overall process, first, the foreigners must get permission from the Ministry of Interior (Federal), and the respective provincial government so they can acquire land within their capacity.
HOPE Marketing Pvt Ltd will help and guide you to ensure that your investment in Pakistan will be your right decision.
So let’s have a look to essentials :
- UPPER LIMIT: Aside from specific fields, likewise media, banking, agriculture, and airlines, the government urges upper limits on investment.
- LOWER LIMIT: After getting the permission, there is no condition required for “Minimum” investments on impartial investment in specified areas.
- Any foreigner can get 100% ownership against the payment for the property in allowed sectors of lower limit.
- According to the 6th clause of the Foreign Private Investment Act 1976, foreigners hold the right to recover their assets in their own country’s currency no matter it has profited or not. The requirement of the process is set out by the State Bank of Pakistan (SBP) for promoting and protecting the investments.
- They can also appoint/hire a bank or representative to collect the investment through a proper channel.
- The investor or buyer (foreigner) has to open a Special Convertible Rupee Account (SCRA) in the local bank of Pakistan where he can withdraw the cash. It imposes according to the portfolio investment condition.
After the research, we got to know that Pakistan has received a healthy and consistent flow of foreign investment from Asia, America, Australia, Africa, and Europe in the last ten years.
1949 registrations of freshly established companies have been made since 2021, with a total quantity starting from 147,842 as per the reports published by the SECP.
One thing that forbids foreigners to invest is that the Protection of Economic Reforms Act of 1992 and the Foreign Private Investment (Promotion & Protection) Act 1976 provide “No Less Favorable” care to the foreign investors compared to the National Investors in similar circumstances.
After the whole process as mentioned above, the foreigners have to submit to following documents to the home department to fulfill their desire of buying or renting a property in Pakistan:
- The foreigner has to submit an employment letter from the company where they are working currently, along with mentioning the designation and duration of the job as a priority.
- A single copy of the passport and valid visa in the company with the six recent photographs is required to submit.
- At the same time, the CNIC’s copy of real estate agent and landlord/property owner.
- The property owner is also bound to give in the proof of the property owner in case to avoid future issues.
- The tenant or contractor must sign a memo/contract in terms of legal requirements on the final note.
All of the earlier mentioned requirements are mandatory to complete, and if not fulfilled, both persons will face serious consequences (owner or tenant).
HOPE Marketing always keeps in mind that all the procedures and documentation are according to the laws settled by the government of Pakistan to perform all the duties on legal terms.