This country currently has a directory entry or basic profile only; a full handbook is planned.
01Overview
- Region
- South Asia
- Capital
- Islamabad
- Currency
- PKR
- Languages
- Urdu, English
- ISO code
- PK / PAK
Jurisdictions
- Pakistan — National level; special zones and regulated sectors have separate rules
Macro indicators such as GDP and population will be added from the World Bank in the data release (P1).
02Market Entry
Foreign ownership
Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.
Open with up to 100% foreign ownership outside restricted sectors
- Applies to
- Arms, explosives, currency printing and radioactive substances are restricted
- Jurisdiction
- Pakistan
- Source
- MOFCOM
03Business Formation
Common legal entity
The company form most commonly used by foreign investors for a local operating entity.
Private limited company
- Applies to
- Ordinary companies
- Jurisdiction
- Pakistan
- Source
- MOFCOM
Registration authority
Primary authority for company or commercial registration.
Securities and Exchange Commission of Pakistan (SECP)
- Applies to
- Ordinary companies
- Jurisdiction
- Pakistan
- Source
- MOFCOM
Foreign ownership
Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.
Open with up to 100% foreign ownership outside restricted sectors
- Applies to
- Arms, explosives, currency printing and radioactive substances are restricted
- Jurisdiction
- Pakistan
- Source
- MOFCOM
04Taxation
Headline corporate income tax
Statutory headline rate for ordinary companies, before incentives, exemptions, thresholds or special regimes. Always read with the conditions.
29%
- Applies to
- Banks 39%; qualifying small companies 20%; high earners also pay super tax
- Jurisdiction
- Pakistan
- Source
- State Taxation Administration
Indirect tax (VAT / GST / SST)
Standard rate and type of VAT, GST or sales & service tax.
Sales tax 18%
- Applies to
- Ordinary companies
- Jurisdiction
- Pakistan
- Source
- State Taxation Administration
Dividend withholding tax (non-residents)
General withholding on dividends paid to foreign shareholders, before treaty relief.
15%
- Applies to
- Reducible under the China–Pakistan treaty
- Jurisdiction
- Pakistan
- Source
- Federal Board of Revenue (FBR)
Tax authority
Authority responsible for corporate tax registration and filing.
Federal Board of Revenue (FBR)
- Applies to
- Ordinary companies
- Jurisdiction
- Pakistan
- Source
- State Taxation Administration Federal Board of Revenue (FBR)
Tax treaty with China
Whether a double taxation agreement with China is in force. Rates and conditions per the treaty text.
In force
- Applies to
- Rates and conditions per the treaty text and STA publications
- Jurisdiction
- Pakistan
- Source
- State Taxation Administration (China) State Taxation Administration
05Banking & Payments
Exchange controls
Whether general exchange controls or cross-border fund rules apply.
Exchange control administered by the State Bank of Pakistan
- Applies to
- Foreign investors may repatriate returns under the rules
- Jurisdiction
- Pakistan
- Source
- MOFCOM
Banking & financial regulator
Primary regulator for banking and foreign exchange.
State Bank of Pakistan
- Applies to
- Ordinary companies
- Jurisdiction
- Pakistan
- Source
- MOFCOM
06Employment
Foreign employee work permit
Main permit types needed for foreign employees to work legally.
Work visa from the Ministry of Interior, with police registration
- Applies to
- Ordinary companies
- Jurisdiction
- Pakistan
- Source
- MOFCOM
Labour & work permit authority
Authority for labour rules and foreign employee work permits.
Board of Investment (BOI); Ministry of Interior
- Applies to
- A separate work permit is no longer needed; only a work visa
- Jurisdiction
- Pakistan
- Source
- MOFCOM
Social security contributions
Main employer social security schemes for local and foreign employees.
Employees' Old-Age Benefits (EOBI) and provincial social security contributions
- Applies to
- Applies to establishments above the headcount threshold
- Jurisdiction
- Pakistan
- Source
- Employees' Old-Age Benefits Institution
07Trade & Customs
Main free trade agreements
Main regional and bilateral trade agreements relevant to Chinese exporters (not exhaustive).
China–Pakistan FTA; FTAs with Malaysia and Sri Lanka, and others
- Applies to
- Ordinary companies
- Jurisdiction
- Pakistan
- Source
- MOFCOM
Customs authority
Authority for import/export clearance and tariffs.
Pakistan Customs (under the Federal Board of Revenue)
- Applies to
- Ordinary companies
- Jurisdiction
- Pakistan
- Source
- Federal Board of Revenue
08Investment & Manufacturing
Investment authority / agency
Body responsible for approving, registering or promoting foreign investment.
Board of Investment (BOI)
- Applies to
- Ordinary companies
- Jurisdiction
- Pakistan
- Source
- MOFCOM
Free zone / SEZ regime
Whether free zones or special economic zones operate under rules different from the mainland.
Special economic zones
- Applies to
- Under the 2012 SEZ Act; developers and zone enterprises get a 10-year income tax holiday
- Jurisdiction
- Pakistan
- Source
- MOFCOM
09Digital & IP
IP office
Authority for trademark and patent filing and registration.
Intellectual Property Organization of Pakistan (IPO-Pakistan)
- Applies to
- Trademark rights are territorial; register locally or designate via the Madrid System (check WIPO membership)
- Jurisdiction
- Pakistan
- Source
- WIPO
10Compliance & Risk
New York Convention party
Whether the country is party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which affects enforcing foreign arbitral awards locally.
Yes
- Applies to
- Foreign arbitral awards can be enforced under the Convention, subject to its limited refusal grounds
- Jurisdiction
- Pakistan
- Source
- UNCITRAL
Live risk monitoring
Geopolitical, conflict and trade-route risk events for Asia-Pacific, monitored by our sister site Global Risk Monitor.
View Asia-Pacific risk monitor
Global Risk Monitor · Geopolitical and trade-route risk monitoring
11Step-by-Step
- 1Decide model and jurisdiction
- 2Confirm licences
- 3Prepare documents
- 4Incorporate
- 5Register for tax
- 6Open bank account
- 7Obtain operating licences
- 8Start operations
Generic steps without times or fees; rely on the facts and official sources on this page.
12Official Resources
Chinese official resources
Country materials from MOFCOM, the State Taxation Administration and China's overseas commercial offices
- MOFCOM country investment guideMOFCOM · PDF (Chinese)
- Country tax guide (STA)State Taxation Administration · PDF
- Commercial office中华人民共和国驻巴基斯坦伊斯兰共和国大使馆经济商务处
- MOFCOM going-global platformMOFCOM
- Compliance & security alertsMOFCOM platform
Official guides are long Chinese-language PDFs updated on the publishers' schedules. Our structured facts cite local authorities as primary sources; use these guides to cross-check.