We authored the Pakistan chapter of the Chambers Global Practice Guide: Doing Business In 2024, an essential reference for businesses and investors seeking to navigate Pakistan’s legal framework.
The comprehensive guide provides an accessible overview of Pakistan’s judicial system and laws relating to foreign investment, companies, employment, tax regime, competition, intellectual property and data protection. It also highlights recent policies and reforms impacting the business environment.
The comprehensive guide highlights the country’s liberal foreign investment regime, with most sectors open to investment with no minimum capital requirements. The guide details the recent establishment of the Special Investment Facilitation Council (SIFC) to attract foreign investment and streamline approval processes and recent investment promotion legislation, including the Foreign Investment (Promotion and Protection) Act, 2022, and the Inter-Governmental Commercial Transactions Act 2022.
The chapter also discusses companies, and outlines incorporation processes, management structure, directors duties and ongoing reporting obligations. Employment law is also thoroughly discussed, including regulations for workers and managers, employment contracts, termination and collective bargaining.
Major federal and provincial taxes applicable to employees and businesses are also examined, including tax credits and incentives available in Special Economic Zones, Special Technology Zones, and Export Processing Zones, as well as rules on tax consolidation, thin capitalization, transfer pricing, and anti-evasion.
Competition law is also addressed, focusing on merger control, cartels, and abuse of dominant position. Furthermore, the chapter provides an overview of intellectual property rights in Pakistan, terms of protection, and enforcement mechanisms. While noting the absence of comprehensive data protection legislation, the guide highlights relevant provisions of the Prevention of Electronic Crimes Act, 2016.
Lastly, the guide discusses upcoming legal reforms, including the draft Arbitration Bill, which aims to modernize Pakistan’s arbitration regime in accordance with the UNCITRAL Model Law on International Commercial Arbitration.
For an in-depth look at Pakistan’s business laws, please consult the Pakistan chapter of the Chambers Global Practice Guide for Doing Business in Pakistan 2024.
For more information, please contact Hasnain Naqvee, Bilal Shaukat, Mayhar Kazi and Shafaq Rehman.
This article is not legal advice; it provides information of general interest about current legal issues.
RIAA Barker Gillette is Pakistan’s premier law firm, with an on-the-ground presence in four major cities in Pakistan: Karachi, Islamabad, Lahore, and Peshawar, and affiliated offices in Dubai (DIFC) and London.
The firm practices in all areas of corporate, commercial and dispute resolution law. Leading international legal directories consistently recognize the firm as a top-tier law firm in Pakistan.
RIAA Barker Gillette is the exclusive member firm in Pakistan for Lex Mundi, the world’s leading network of independent law firms with in-depth experience in over 125 countries worldwide.
