Can foreigners acquire land ownership rights in Pakistan?
Yes! Foreigners can become owners of land after the company is registered with the Securities and Exchange Commission of Pakistan (SECP). However land is a provincial issue in Pakistan and land acquisition rules vary from province to province. Generally, foreign nationals can become landowners individually with the permission of the Federal Government (Ministry of Home Affairs) and the relevant provincial government.
All sectors and activities are open to foreign investment unless specifically prohibited or restricted for reasons of national security and public safety. Note that specific limited industries include weapons and ammunition, explosives, radioactive substances, securities, currency and usable alcohol. There is no minimum limit for foreign equity investment in any sector. There is no upper limit for foreign equity stocks to invest in sectors other than airlines, banking, agriculture and media.
Foreign investors in any sector will be entitled to return profits or any other funds in the country’s currency at any time when the investment has been made.
According to Section 6 of the Foreign Private Investment (Promotion and Protection) Act, 1976 and in accordance with the Manual of Foreign Exchange, 2002 of the State Bank of Pakistan, the procedure for foreign investment is subject to rules and regulations. Foreigners are entitled to 100% property rights, except in certain areas of airline, banking, engineering, agriculture and media.
Pakistan’s existing laws provide full incentives and facilities for foreign direct investment as well as portfolio investment in the country to increase foreign exchange earnings. Non-resident investors of locally incorporated companies are entitled to return profits/profits and divestments and appoint authorized traders/banks to repay the profits/divestment income through the banking channel.
For portfolio investment in Pakistan, foreign investors can invest in securities listed on the Pakistan Stock Exchange by opening a Special Convertible Rupee Account (SCRA) with any bank in the country. Changes and refunds of other fees are also permitted in accordance with currency rules. and regulations.
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Hafeez Shaikh stresses need to incentivise real estate sector
Adviser to Finance Minister Dr Abdul Hafeez Shaikh on Monday stressed the need to encourage the real estate sector to attract investment from the Pakistani diaspora, reported Pakistan.
Presiding over a meeting to analyze the different financial models for “Naya Pakistan Economic Zone next to Islamabad Highway” in Islamabad, the councilor assured of the government’s support to the development of the housing sector as it has the potential to provide employment opportunities to the youth , Radio Pakistan reported.
He ordered the concerned officials to hold another meeting with all relevant stakeholders this week to analyze any financial plans prepared by the Naya Pakistan Housing Association (NPHA) for the above mentioned project.
Earlier, NPHA (r) Lieutenant General Ameer Ali Haider informed the meeting about the general details of the project.
It has been reported that the project will be completed in three to four phases, starting from Faizabad and ending near Rawat.
“The Border Workers Organization is working with NPHA on the feasibility of the project. The aim is to complete the first phase after one year under the public-private partnership regime. Different financial models are being explored for the completion of the project in consultation with the State Bank of Pakistan and Federal Board of Revenue, ”he added.
Investment In Commercial Property In Pakistan
Commercial real estate in Pakistan has different characteristics that distinguish it from a dwelling house.
It is not a simple job to invest in commercial real estate. Before investing, there are also things to look at. Business investment in Pakistan includes the choice of the site, the number of feet, how many people visit the region per day, price, price for money, and so on.
It is just as difficult to find the right property for your company, whether it is rented or purchased. Property is another aspect that needs to be targeted in the form of the company so that the investment is not lost.
That is why here are some outstanding advantages and handy tips for investing in commercial real estate in Pakistan.
By building equity in your real estate business, you will use it to further expand your business without jeopardizing your business. This helps you deal with the development of your company more flexibly.
It also gives more options when the retirement period arrives. As a company owner, you can either directly sell the practice and underlying property during the retirement period, or just sell the practice and rent a commercial property that provides a source of income.
Investments such as stocks do not allow for anything more than buying and selling, however, provided requirements are met and necessary permits from a local authority are secured, commercial homeowners can invest in their real estate.
A commercial property owner in Pakistan can upgrade, restructure the property outside or inside, increase rents or even modify its zoning. Inflation will bring value to current features as well. While new developments may cost more than building older properties, existing sites and the more recent local construction are still growing in value.
Tax Benefits And Maximum Returns
It can be a dynamic place to invest. Unfortunately, it is not only black and white as a profit generation. Taxes and other external conditions can also affect business activities. These elements can be used to your advantage when working with real estate.
The value could rise in terms of market valuation and financial value for you, but over the years the building itself would certainly decline. The direct decline indicates that the physical value of property decreases over 27.6 years. Meanwhile, after more than a decade, other features will fall apart. This loss will offset a market value gain that actually contributes to a better outcome.
A competent accountant would require these considerations. However, in most markets, such resources are not open. Here is another explanation for preferring industrial ownership over other solutions.
Cash Flow Perspectives
You must pay the premium for an additional cash flow of rental income if you own a commercial property with room for tenants. Tenants are willing to use their money to pay for the purchase of their land, offsetting the expense of saving.
It is important to note, however, that tenants include responsibility for property maintenance, which will diminish the presence of the main commercial properties.
Practical Tips For Investing In Commercial Real Estate In Pakistan
- One must understand the state of the market, including tariffs and the value of land, so as not to deceive man. It is extremely important to keep yourself up to date. In relation to residential and commercial property, is a great distinction, so the characteristics of both forms must be understood.
- You need to prepare yourself so that you know when, why and how to invest in company property, because there is only one factor you need to consider when investing.
- You need to remember whether the position would offer you capital growth or not, whether the site has construction potential or not.
- The land has or does not have the most important lease option. If you do not want to use the feature yourself, you must rent it.
- The land should also include important amenities such as parking lots and electrical supplies.