Pakistan has announced a major economic policy decision. Foreign investors can now remit their entire profit abroad in their own country’s currency. The cabinet made the announcement on July 8, 2023.
The cash-strapped government aims to attract foreign investment to boost the economy. The new policy, called the Pakistan Investment Policy 2023, abolishes the minimum equity rate for foreign investment.
Foreign investors can now invest in any sector, regardless of the investment size. Special protection, including guarantees against nationalization and expropriation, is provided to foreign investors.
The government hopes to attract $20-25 billion in foreign investment over the next few years. This would significantly benefit the Pakistani economy, which faces challenges like high inflation and a widening current account deficit.
Previously, foreign investors could only remit a certain percentage of their profit abroad. This hindered their investment returns in Pakistan.
The new policy showcases the government’s commitment to attracting foreign investment. Its success in attracting desired investments remains to be seen, but it is a positive step forward.
